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Why India’s steady sovereign bond yields should not be read as a sign that everything is okay

India's calm bond yields conceal alarming household debt (45.5% GDP), largely consumption-driven. RBI's low-rate engineering benefits government, but domestic credit shows distress: lower-income defaults, gold loan reliance, and collapsed savings. Policy must shift beyond monetary tools, adopting sharper macroprudential oversight, prudent fiscal management, and prioritizing real wage/job growth. This tackles inequality-fueled household financial vulnerability.

LiveMint · Ajit Ranade · Jul 13, 2026 at 7:00 AM

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