New Delhi, May 18 -- A quiet shift is underway in how India spends, as salaries fail to keep pace with the rising cost of living.

An April 2026 white paper titled The New Indian Household Balance Sheet by wealth manager Client Associates found that net financial savings have fallen sharply to about 5.2% of gross domestic product in 2023-24, down from nearly 7.7% in the pre-pandemic years, as rising borrowings eat into household surpluses and household financial liabilities have climbed to 6.2% of GDP, a decade high, driven by rapid growth in home loans, personal credit, and credit card spending.

And somewhere in between wanting something and not being able to afford it, a new habit has taken hold: buy now and pay later (BNPL).

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