India, July 1 -- Private consumption accounts for more than 60% of India's gross domestic product (GDP), making it the mainstay of economic growth. Given the fact that India's per capita income levels are still rising (as they should be), consumption's importance in overall economic growth will only increase. It is in this backdrop that the statistical trend of rising indebtedness among Indian households is a development worth paying attention to. A pivot towards greater debt-financing of current consumption can boost GDP levels by generating tailwinds for overall GDP - but if this pivot is happening without a concomitant rise in income levels (this is easier said than proved because credit decisions are also driven by expectations of future income) it can lead to an erosion in household balance sheet health and jeopardise future consumption levels. An HT analysis of various aspects of credit as applicable to Indian households shows that there is no immediate cause for concern. Sure, there is clear evidence of present-day consumption becoming more debt-financed than it was in the past, but there are no signs of any incipient distress in the bank credit market yet. This should rule out any alarmist interpretations on the recent rise in household credit. To be sure, a continuous and proactive monitoring of the sector is needed, which, to give credit where it is due, the Reserve Bank of India has been doing. The fact that India's financial sector does not allow banks to indulge in the kind of (toxic) financial innovation which led to the housing market bubble in the US before the 2008 global financial crisis, adds another level of stability within the household credit system. Still, given the increased share of household credit in GDP, it is perhaps time that economic analysis of the ongoing credit binge were taken beyond the realm of just financial sector variables to their larger, medium to long-term, macroeconomic implications. Such a study should ask a broader question to better understand the ongoing credit binge. The fiscal policy arm of the state has been nudging households to pivot from saving to consuming more by decisions such as making the new income tax regime (it does not offer tax exemptions for savings) more attractive. This might be adding to credit-fueled growth right now, but is this growth coming at the cost of nudging households in a direction where they are paying inadequate attention to provisioning for their retirement? India will be better off asking this question sooner than later....