India's middle class increasingly relies on debt for survival

India's middle class is facing a serious debt crisis. Saurabh Mukherjea, an expert from Marcellus Investment Managers, shared his concerns in a recent podcast. He highlighted that many middle-class Indians have taken on loans that they may never be able to repay. The rising numbers are alarming. Personal loans and credit card debt have surged in recent years. According to the Reserve Bank of India (RBI), credit card and retail loans rose from 4% to 11% of total bank credit over the last decade. Mukherjea stressed that this borrowing is mainly for basic needs, not for investments or wealth-building. He pointed out that nearly half of what vulnerable borrowers owe is for daily expenses. This means they are borrowing primarily just to survive. Mukherjea estimates that between 5% to 10% of middle-class Indians are caught in a debt spiral, having multiple loans they cannot fully repay. He issued a warning that without action, the situation will worsen each year. Mukherjea advised those struggling with debt to seek financial counseling to avoid falling deeper into financial trouble.