New Delhi: Household financial borrowings in FY23 surged to 5.8 per cent of GDP, the second-highest in the post-independence period, it was 6.7 per cent of GDP in FY07, Motilal Oswal Financial Services said in a report.

According to the Reserve Bank of India (RBI), household net financial savings (HHNFS) collapsed to just 5.1 per cent of GDP in FY23, marking the lowest level in 47 years since FY77, the report said. Moreover, it was revised down to 7.2 per cent of GDP for FY22 as well, from 7.6 per cent of GDP (and as much as 8.3 per cent of GDP, as per RBI’s first estimates released in Sep’22). The downward revision in FY22 is in line with our calculations and the deterioration in FY23 is worse than our estimates.