Economic slowdown and the Indian credit card market

Abstract

The penetration of credit cards in India is increasing with customers getting comfortable with this form of payment. However, this has also led to an increased average customer debt, which may be of a great concern to the economy. In US and other developed countries, the increasing debt and delinquency rates on credit cards is linked to a fall in spending on durable items, which explains a major part of the economic slowdown. However, there is no significant work done on this aspect from India’s perspective. This study aims to establish a link between the slowdown in economy and credit card market in India.