While there are genuine concerns about the slowdown in consumer lending due to higher interest rates, the chart shows the immense potential that exists in India’s consumer debt market.
One reason for the low penetration is, of course, the comparatively low income levels. But even so, there is considerable scope for increasing consumer credit in India.
Graphic by Sandeep Bhatnagar/Mint
Also See | India’s Consumer Debt to GDP Ratio Still Minuscule (PDF)