India's Household Debt Surge: 28 Crore Borrowers with Rs 15.7 Lakh Crore in Outstanding Loans

India is experiencing a dramatic increase in household borrowing, indicating a growing reliance on loans for fulfilling aspirations and covering expenses. According to data presented by Minister of State for Finance Pankaj Chaudhary in the Lok Sabha, the number of Indians with outstanding debt has more than doubled over the past seven years, rising from 12.8 crore in 2017-18 to 28.3 crore in 2024-25.

The financial data reveals a substantial surge in household financial liabilities, which have expanded from Rs 3.8 lakh crore in FY2015 to Rs 18.8 lakh crore in FY2024, before slightly decreasing to Rs 15.7 lakh crore in FY2025. These figures specifically represent live unique borrowers - the 28.3 crore individuals currently repaying loans, regardless of whether they have multiple outstanding credit lines.

When examined as a proportion of GDP, the trend appears equally significant. Household debt represented just 3 percent of GDP in FY2015, but this figure nearly doubled within a decade, reaching a peak of 6.2 percent in FY2024 before moderating to 4.7 percent in FY2025 (with FY2025 figures estimated based on the RBI's August 2025 bulletin).

The average debt burden per borrower has also increased substantially, climbing from Rs 3.4 lakh in FY2018 to Rs 4.8 lakh in FY2025.

As India's economic expansion continues, household borrowing will likely remain a crucial growth driver. However, it also represents a potential vulnerability if income growth fails to keep pace with increasing debt levels.