debt grew 11.9 per cent year-on-year to Rs 371 lakh crore, or 170.2 per cent of GDP, in the September 2021 quarter, even as the indebtedness of the households declined marginally, according to a report. However, this is lower than the previous fiscal, when it had touched 180.2 per cent of GDP after a three per cent contraction in the nominal GDP during FY21, according to the report by Motilal Oswal Financial Services. At 180.2 per cent of GDP in FY21, this was the peak as against 155 per cent in FY20. Also, the debt-to-gross domestic product (GDP) ratio contracted to 170.2 per cent of GDP in the June 2021 quarter, with the normalisation of nominal GDP, which grew at 14.7 per cent. The general government debt (Centre and states combined) has grown strongly by 16.1 per cent in the September 2021 quarter; while non-government, non-financial debt rose at a much slower pace of 7.7 per cent, according to the report. The total non-financial sector (NFS) debt stood at Rs 371 lakh crore in the September 2021 quarter, up from Rs 356 lakh crore in the March 2021 quarter and Rs 361 lakh crore in the June 2021 quarter. As much as two-thirds of the rise in debt in the second quarter over the previous quarter was due to the government sector, as household debt growth ebbed, corporate debt growth spiked leading to an overall rise of 11.9 per cent in the second quarter, similar to the 12.2 per cent average growth over the previous two quarters.