r/IndianMiddleClass

Banks used to be the obvious gateway to formal credit.

That may be changing.

NBFCs accounted for 47% of new-to-credit consumer originations by June.

Which means if you're trying to understand India's next consumption cycle, you can't just look at salaries and savings anymore.

You also have to look at credit access.

A household can consume more because:

Income ↑

or

Savings ↑

or

Credit availability ↑

And these three can create very different outcomes for investors.

If India's consumption growth is increasingly being supported by credit, that's a very different story from consumption being driven by rising household incomes.

That's probably the part worth watching.