India’s Generational Shift in Consumption and Debt - report by Morgan Stanley

Industry Insights
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This is a quite interesting report that talks about the growth of consumer debt and the various trends in it.

  1. At a broader level, household debt to GDP has inched up from 11.2% in F12 to 15.7% in F18. South
    Africa, with per capita GDP of about USD 6,000, has about 44% household debt while Thailand, with a similar per capita income, has almost 78% debt.
  2. An important enabler for this trend in India could have been the formation of credit information bureaus such as CIBIL (Credit Information Bureau (India) Limited), that lenders can access to check the credit history of their prospective borrowers. About a decade ago, in the absence of income documents, lenders relied on surrogate verification while assessing creditworthiness.
  3. CIBIL itself has a database of 248 million unique borrowers which has almost doubled in
    over five years.
  4. The retail loan book of India’s largest private bank has grown at 22% CAGR.

You can read the full report here. Quite interesting if you are an investor who is betting on the Indian consumption story.

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