India, July 2 -- If you look closely at India's macroeconomic indicators - such as the growth rate, inflation numbers, etc., - they project a story of robust financial discipline and economic growth. However, the average household budget portrays a far more fragile reality. Over the last 12 years, the vital link between the wealth created by the economy and individual purchasing power - the goods and services one can buy with one's income - has broken.

Given wages (after inflationary erosion is accounted for) have not grown across livelihoods, households have been forced to meet consumption expenses through borrowings. Families are now increasingly relying on credit card debt, personal loans, and loans raised against gold to fill the gap...