What is average debt per borrower in India? Govt answers in Parliament

Indian Household Borrowing Expands Sharply Over Seven Years

The Finance Ministry shed light on the rapid expansion of household borrowing in India over the past seven years, with new data presented in the Lok Sabha on Monday.

Distinction Between Average Debt per Borrower and Per-Capita Debt Burden

The Finance Ministry clarified that the government does not calculate India's per-capita debt burden, instead relying on data that reflects the average debt per borrower (people who have taken loans and have outstanding balances).

Key Statistics

• Live unique borrowers increased from 12.8 crore (2018) to 28.3 crore (2025)
• Total debt outstanding more than tripled—from Rs 43.6 lakh crore to Rs 135.1 lakh crore in the same period
• Average debt per borrower rose from Rs 3.41 lakh in 2018 to Rs 4.77 lakh in 2025

Household Financial Liabilities

The government also placed year-wise numbers on the total financial liabilities of Indian households, which have grown sharply over the last decade.

• Financial liabilities stood at Rs 3.8 lakh crore in 2014–15
• Rose gradually to Rs 7.7 lakh crore by 2018–19
• Saw a jump after the pandemic period and reached Rs 18.8 lakh crore in 2023–24
• Preliminary estimates for 2024–25 place liabilities at Rs 15.7 lakh crore

India's External Debt

The government shared India's external debt trajectory over the last 11 years, with the country's external debt increasing steadily from Rs 29.7 lakh crore in 2015 to Rs 63 lakh crore by March 2025.

• External debt grew in line with India's expanding economy and external financing needs
• The only exception was 2020–21, when the figure saw a marginal dip

What the Numbers Mean

While citizens often talk about "per capita debt", the government clarified that such a metric is not officially calculated. Instead, available data shows:

• More Indians are taking loans
• The size of outstanding loans per borrower is rising
• Household financial liabilities are growing faster than a decade ago
• India's external debt continues to climb in absolute terms