Kerala Leads in Household Debt in India : NABARD Report
Kerala has emerged as the state with the highest household debt in India, as revealed in the latest NABARD report, which surveyed over one lakh households across the country. The report, which covers the period from July 2021 to June 2022, highlights the financial challenges faced by households in the state, particularly in the wake of the COVID-19 pandemic.
While the national average for households with savings in banks, post offices, self-help groups, and chits stands at 66%, only 35% of households in Kerala report savings in these formal channels. This is a stark contrast to states like Uttarakhand, Uttar Pradesh, and Jharkhand, where more than 70% of households have formal savings.
In addition to lagging in savings, Kerala also ranks poorly in investment practices. Less than 20% of households in the state have invested in options like land, gold, government bonds, or fixed deposits, a trend also observed in other states like Goa and Karnataka.
The most alarming statistic, however, is Kerala’s household debt. At Rs 1,98,951, Kerala’s average household debt is nearly double the national average of Rs 90,372. States such as Nagaland, Mizoram, and Goa also feature high levels of household debt, but Kerala remains the leader in this category. This contrasts with states like Jharkhand, where household debt is as low as Rs 21,060.
The findings underscore significant financial distress in Kerala, where household debt far exceeds savings and investments, raising concerns about the overall economic stability of the state.
