The article was not trying to state that credit cards are a good thing. The message that I wanted to get across was that a huge growth in credit spending is inevitable given what is happening in India right now, in terms of enabling factors. And that will have global implications.
if they decide that they want to move the country in a given direction, they have all the tools to make it happen. Just look at the way US home buyers got immediate tax credit as an example of how this could play out.
Additionally, in long term, it will allow the govt to track the implementation of its various policies more precisely.
In short it is what the SOCIAL SECURITY NUMBER is to the western civilization.
But like it's said, some men want to watch the world burn. Like how families in the US had to do double jobs to get rid of debt, the global consciousness wants Indians to suffer the same fate. Great.
'Thanks for the comment. Obviously, the use of the word “problem” sends out a message that somehow we think credit is good for India. Thanks for pointing that out – we have tried to fix that in the article, and hopefully as a result, the messaging changes as well.
The intended messaging was this: the sheer scale of credit that would originate from India in the next 3-4 years cannot be ignored.'
How anyone can think this in view of the global debt crisis is puzzling. The smarter fraction of the population in the first world now tends to regard credit cards as akin to crack, opium, or junk food. Things the moderate use of which calls for unusual levels of self-discipline.
I'm sure the prospect of millions of new credit card slaves in India has its Shylocks salivating, but let's hope something has been learned about the consequences of failing to keep them under close scrutiny.
Right now poor people are at the mercy of pawnbrokers, loan sharks who often charge interest rates of 100%+ per year.
Potentially access to reasonable rate credit cards is life-changing.
Making a "big education investment" on a credit card is insanity. The student loan debt crisis may well be the next domino to fall in the the US economic meltdown - it was half the motivation for the participants in Occupy:
Rates on credit cards are generally less than reasonable, and their policies are frequently abusive. And this is in America, not the "wild East".
Watch, or listen to this, if you are concerned about India's future exploitation:
If the way housing loans work in India is a pointer, you will see a lot of scrutiny in the way the credit cards would be managed. Indian banks are decidedly conservative.
Credit limits are also set in a very conservative manner.