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Household Indebtedness in India: NSS (77th Round) Findings

  • 11 Sep 2021

On 10th September 2021, the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation released the ‘All India Debt & Investment Survey 2019’.

  • It was conducted during the period January – December, 2019 as a part of 77th round of National Sample Survey (NSS). Prior to this the survey was carried out in NSS 26th round (1971-72), 37th round (1981-82), 48th round (1992), 59th round (2003) and 70th round (2013).

Objective

  • The main objective of the survey on Debt & Investment was to collect basic quantitative information on the assets and liabilities of the households as on 30.6.2018. Besides, the survey gathered information on the amount of capital expenditure incurred by the households during the Agricultural Year 2018-19 (July-June), under different heads, like residential buildings, farm business and non-farm business.

The following indicators were generated from the survey of All India Debt & Investment:

  • Average value of Assets (AVA): The average value of all the physical and financial assets owned per household as on 30.06.2018.
  • Incidence of Indebtedness (IOI): The percentage of the indebted households as on 30.06.2018.
  • Average amount of Debt (AOD): The average amount of cash dues as on 30.06.2018 per household.
  • Average Fixed Capital Expenditure by the households during 01.07.2018 to 30.06.2019

Findings on Household Indebtedness

Incidence of Indebtedness (IOI) as on 30.06.2018

  • Incidence of Indebtedness was about 35% in Rural India (40.3% cultivator households, 28.2% non-cultivator households) compared to 22.4% in Urban India (27.5% self-employed households, 20.6% other households).
  • In Rural India, 17.8% households were indebted to institutional credit agencies only (21.2% cultivator households, 13.5% non-cultivator households) against 14.5% households in Urban India (18% self-employed households, 13.3% other households)
  • About 10.2% of the households were indebted to non-institutional credit agencies only in Rural India (10.3% cultivator households, 10% non-cultivator households) compared to 4.9% households in Urban India (5.2% self-employed households, 4.8% other households)
  • About 7% of the households were indebted to both institutional credit agencies & non-institutional credit agencies in Rural India (8.8% cultivator households, 4.7% non-cultivator households) against 3% households in Urban India (4.3% self-employed households, 2.5% other households)

Average amount of Debt (AOD) per Household

  • Rural Households: Average amount of debt was Rs. 59,748 among rural households (Rs. 74,460 for cultivator households, Rs. 40,432 for non-cultivator households)
  • Urban Households: Average amount of debt was Rs. 1,20,336 among urban households (Rs. 1,79,765 for self-employed households, Rs. 99,353 for other households)
  • In Rural India, the share of out standing cash debt from institutional credit agencies was 66% against 34% from non-institutional credit agencies. In Urban India, the share of outstanding cash debt from institutional credit agencies was 87% compared to 13% from non-institutional credit agencies.

Average amount of Debt per Indebted Household (AODL)

  • Rural India: Average amount of debt was Rs. 1,70,533 among indebted households in Rural India (Rs. 1,84,903 for cultivator households, Rs. 1,43,557 for non-cultivator households)
  • Urban India: Average amount of debt was Rs. 5,36,861 among indebted households in Urban India (Rs. 6,52,768 for self-employed households, Rs. 4,82,162 for other households)