Even before pandemic, debts had soared by 84% in rural & 42% in urban India

The pandemic-led economic crisis has exacerbated the rising indebtedness among India's poor households, and could push more families into a debt trap

The number of Indian households under debt and the amount they owed increased between 2012 and 2018, making it more likely that these families would fall into a debt trap, shows an analysis of the latest government data by Dvara Research, a policy research organisation focused on financial inclusion and social protection.


This rise in indebtedness is sharper among rural households (84%) than urban (42%), as per the analysis, which compared the All India Debt and Investment Survey (AIDIS) from the 70th round of the National Sample Survey with the 77th, released in September 2021. Lower-income households in cities continue