India's Economy in the last decade: A view through the Flow of Funds

Bhasin, Puneet and Jayadev, Arjun (2026) India's Economy in the last decade: A view through the Flow of Funds. Working Paper. Azim Premji University, Bengaluru.

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Abstract

Using the RBI’s Flow of Funds data, this paper examines changes in India’s sectoral balance sheets between FY2011-12 and FY2023-24. It confirms two longstanding features: households remain the dominant creditor and government the dominant borrower. It identifies a break in the historical stability of household asset portfolios, with savings increasingly moving into mutual funds, insurance, and pension products, though deposits remain the largest asset class. It further finds that deleveraging has left corporate balance sheets healthier, and that non-banking financial institutions have displaced banks as the dominant holders of government debt. The paper then draws out four macroeconomic insights: personal consumption appears increasingly supported by credit; private investment remains tepid on weak demand, despite repaired balance sheets; non-banking intermediation has deepened capital markets while raising exposure to market and regulatory dynamics; and persistent current account deficits leave India’s growth dependent on mobile foreign capital.

Item Type:	Monograph (Working Paper)
Authors:	Bhasin, Puneet and Jayadev, Arjun
Document Language:	Language English
Uncontrolled Keywords:	Economy, Money Flow, Capitalist economy, financial flows, India
Subjects:	Social sciences Social sciences > Economics Social sciences > Economics > Financial economics
Divisions:	Azim Premji University - Bengaluru > University Publications > Centre for the Study of the Indian Economy (CSIE)
Full Text Status:	Public
URI:	http://publications.azimpremjiuniversity.edu.in/id/eprint/7801
Publisher URL:	https://azimpremjiuniversity.edu.in/centre-for-the...

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