Is India's consumption story powering growth or hiding risks?

In Focus by The Hindu · Aug 3, 2026 · 36m

What is the driving force of any economy? It is you and me! It’s the money we work so hard to earn and have fun spending. In fact, private consumption accounts for nearly 61.5% of India's GDP. Last year alone, consumer spending grew by 7.7%. This makes households one of the biggest contributors to India’s growth story.

Meanwhile, household debt has climbed to 45.5% of GDP, with unsecured loans rising compared to home loans. Indians are moving away from bank deposits and entering stock markets, either through mutual funds or in equities, like never before.

With 93% of the growth in India's…