Analysing the Household Assets and Liabilities in Rural India: Evidence from the NSSO 77<sup>th</sup> AIDIS Survey
DOI:
https://doi.org/10.25175/jrd/2024/v43/i3/173205Keywords:
Average Amount of Debt, Incidence of Indebtedness, Indebted households, Rural India, Net Worth, Asset Holding.Abstract
The study details various aspects of assets and liabilities of rural households at all India levels, based on the 77th Round of NSSO-AIDIS unit record data, 2018-19. The study also explores the determinants of indebtedness, asset holdings, and net worth. The study intends to determine what types of rural households are most likely to incur debt and which are under debt pressure. There has been a persistent increase in household access to credit in rural India in the last couple of decades that hints at financial inclusion. The benefits were not as great for impoverished households as they were for wealthy ones. The average size of the debt of the richer class is substantially high, and they hold more secured debt obligations than the low asset-holding class. The study confirms high debt risk for the poor class, in fact, most of their debts were unsecured (high-cost credit) and potentially predatory in nature. They have a very high debt-to-asset ratio. Based on these results, as a policy measure, it is judicious to ask for easy access to formal finance for poor households.
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