New Delhi, July 10 -- As India marches towards its $5 trillion economic goal, the discourse around household debt tends to veer towards alarm. Rising indebtedness is often viewed as a red flag-a symptom of financial stress or economic exclusion. While this concern is not unfounded, it also misses a crucial dimension. For many Indian households, debt is not just a burden. It is a deliberate tool for investment, a coping mechanism in the face of weak public provisioning and sometimes a pathway to upward mobility.

New insights from PRICE's ICE 360deg research reveal that around 30% of India's 331 million households currently carry debt. But this topline figure hides wide variation across occupational groups; and the nature of borrowing, its...