(via Sunny Narang)
A quick calculation of total wealth of Urban vs Rural population in India and their debt/capital ratios : Rural India is 2% as compared to 25% in Urban India .
"In the aftermath of demonetisation impact on Indian real estate sector, market value of residential property of Rs 802,874 crore is expected to be wiped off in the next 6-12 months," PropEquity said in a statement. "
Loans included all kinds of outstanding borrowings irrespective of the purpose for which loans were taken. Around 52 % agricultural households in rural India were estimated to be indebted at the time of the survey titled ‘Income, Expenditure, Productive Assets and Indebtedness of Agricultural Households in India’.
The survey was conducted in 2013 and its report released in 2016.
Kerala has the highest outstanding loan amount at Rs 2.13 lakh per agricultural household.
The average outstanding loan of an agricultural household in Andhra Pradesh is Rs 1.23 lakh while in Tamil Nadu it is Rs 1.15 lakh, Karnataka Rs 97,200 and Telangana Rs 93,500, according to the 70th National Sample Survey.
The survey said 77.7 % of agricultural households in Kerala had outstanding loans.
Among non-institutional sources, money lenders (25.8 %) had the major share in terms of outstanding loans.
One of the concerns would be the poor rate of lending by banks to farmers with less than 0.01 hectares land.