The annual financial debt accumulated by Indian households has grown faster than their annual financial assets since the pre-pandemic year 2019-20, an analysis of data from the Reserve Bank of India (RBI) has found.

The amount of financial assets added each year has grown 48% between 2019 and 2025, while the annual liabilities have grown 102% over that period. Even as a percentage of Gross Domestic Product (GDP), the annual financial asset addition is lower this year than before the pandemic, while the annual liabilities added are higher.

The data also reveal a significant shift in the way Indians save, with mutual funds becoming a popular instrument for households to invest their money.

Indian households added ₹24.1 lakh crore to their financial assets in 2019-20, which grew to ₹35.6 l

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