In the April to June 2020 quarter, GDP shrank by 24.4% and in July to September, it shrank less by 7.4%. Net financial savings were a little lower at ₹4.4 trillion in the October to December 2020 quarter. In April to June 2020, the worst quarter hit by lockdown, financial liabilities decreased (yes, decreased) by ₹78,000 crore. In the worst-hit quarter, households managed to pay off debt, and as sentiments improved, people added to liabilities, which is the norm. In times of distress, though some households sank into debt, we were at par with the earlier trend at a macro level.

Source: Mint July 04, 2021 17:03 UTC