Household savings decline due to rising home, auto, personal loans
7 months, 2 weeks ago

Household savings decline due to rising home, auto, personal loans

New Indian Express  

NEW DELHI: Household savings are estimated to have declined for the third year in a row in FY24 as liabilities on account of interest towards housing and vehicle loans have continued to rise, but the trend could reverse in 2024-25 on account of the impact of RBI's curbs on personal loan. The net household savings declined sharply by Rs 9 lakh crore to Rs 14.16 lakh crore in three years to 2022-23, as per the National Account Statistics 2024 data released by the Ministry of Statistics and Programme Implementation. Explaining the data, ICRA Chief Economist Aditi Nayar attributed the declining trend in household savings to a sharp 73 per cent year-on-year increase in liabilities during 2022-23. She further said that as per the indication the trend of decrease in household savings has continued in 2023-24, the data for which is likely to be released later.

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History of this topic

How to address India's falling household savings
1 day, 8 hours ago

How to address India's falling household savings

Live Mint  

Savings have long been the backbone of financial stability in Indian households. Read this | Savings to consumption via debt—warnings from India’s households Key factors behind this trend include shifting consumption patterns and evolving investment behaviours among modern consumers. Urban consumers could benefit from digital micro-saving apps linked to everyday expenses, while rural households might prefer simplified savings accounts with …

Economic Survey 2024: Households not in Distress
5 months ago

Economic Survey 2024: Households not in Distress

Deccan Chronicle  

New Delhi: Keeping in view the investing trend of people in the country, chief economic advisor V Anantha Nageswaran on Monday said that households are not in distress as they are investing more in financial assets and their market values are not captured in the national income data. As per the Economic Survey 2023-24, the registered investor base at NSE …

Household liabilities peak at 5.7%, savings at record low of 5.2% in FY23: RBI
6 months, 3 weeks ago

Household liabilities peak at 5.7%, savings at record low of 5.2% in FY23: RBI

New Indian Express  

MUMBAI: Driven by rising indebtedness, which hit an all-time high of 5.7 per cent in FY23, the net financial savings of the households, which has been the mainstay of savings in the economy, has been on a southward-ho from FY14, when it stood at 7.2 per cent of GDP has hit a record low of 5.2 percent in FY23, shows …

Revival in Household Savings Likely in FY24, Says Crisil
7 months ago

Revival in Household Savings Likely in FY24, Says Crisil

Deccan Chronicle  

Mumbai: High inflows in mutual funds and real estate, strong deposit growth, and slower consumption are pointing towards a rebound in India’s household savings in FY 24 after falling to its lowest level in FY23, rating agency Crisil Ltd said in its report, titled 'Trends in household savings and debt after the pandemic'. Overall, India’s household savings rate has fallen …

Raging inflation, stagnant wages forcing households into debt: Congress
8 months, 2 weeks ago

Raging inflation, stagnant wages forcing households into debt: Congress

The Hindu  

The alarm bells are ringing for the Indian economy, but Prime Minister Narendra Modi has not heard them, the Congress said on April 9. The principal Opposition party’s statement was in response to a news report in The Hindu that quoted the findings of leading financial services firm Motilal Oswal on India’s growing household debt. Party general secretary Jairam Ramesh …

Households’ debt surged to fresh high by December 2023: report
8 months, 2 weeks ago

Households’ debt surged to fresh high by December 2023: report

The Hindu  

In what may be construed as a sign of rising financial distress, India’s household debt levels are reckoned to have touched an all-time high of 40% of Gross Domestic Product by December 2023, while net financial savings had likely dropped to their lowest level at around 5% of GDP, as per a research report from leading financial services firm Motilal …

Affordability to buy home to rise to a three-year high in 2024, on expectations of interest rate cuts
1 year ago

Affordability to buy home to rise to a three-year high in 2024, on expectations of interest rate cuts

Hindustan Times  

The affordability for home purchases is expected to improve for the better in 2024, basis the expectation of a 60-80 bps repo rate cut during the year, says JLL’s report on the Home Purchase Affordability Index. JLL Home Purchase Affordability Index signifies whether a household earning an average annual income is eligible for a housing loan on a property in …

Crushed by inflation, populace using loans to make ends meet: Congress
1 year, 1 month ago

Crushed by inflation, populace using loans to make ends meet: Congress

The Hindu  

Expressing concern over the economic trends emerging from the Reserve Bank of India’s October bulletin, the Congress on Wednesday alleged that a vast majority of Indians are suffering because of economic “mismanagement” by the BJP-led Centre. Congress general secretary Jairam Ramesh said the October bulletin “shows extremely concerning economic trends” as inflationary trends have remained above the RBI’s threshold level …

How ‘POT’ threatens to play a major role in coming elections
1 year, 2 months ago

How ‘POT’ threatens to play a major role in coming elections

New Indian Express  

None batted an eye when the RBI’s data on the net financial savings of households suggested that it dropped to a two-decade low of 5.1% of GDP in 2022–23. There is no distress, it said, claiming that households have been taking advantage of low interest rates to invest in physical assets, such as real estate, passenger cars, and gold. Even …

Are Indians saving enough? There is no clear answer
1 year, 2 months ago

Are Indians saving enough? There is no clear answer

Live Mint  

Indian household borrowings rose sharply last year, as per recently released Reserve Bank of India data. This led to a decline in household net financial savings—defined as household financial savings during the year minus financial borrowings—to just about 5% of nominal gross domestic product in 2022-23, a 2.5% annual drop. In fact, net household financial savings seem to be still …

Decoding the historic decline in financial savings of Indian households | In Focus podcast
1 year, 2 months ago

Decoding the historic decline in financial savings of Indian households | In Focus podcast

The Hindu  

October 05, 2023 04:03 pm | Updated 04:05 pm IST The net financial savings of households in India has fallen to a five-decade low of just 5.1% of the GDP in FY 2023. This is a worrying development, because a high savings rate has traditionally correlated with a healthy growth rate. Data released by the RBI also shows that at …

Have household savings reduced?
1 year, 2 months ago

Have household savings reduced?

The Hindu  

The release of the Reserve Bank of India’s Monthly Bulletin in September revealed that households’ net financial savings had fallen to 5.1% from 11.5% in 2020-21. The Finance Ministry explained that while household financial savings may be reducing, it did not imply total savings were falling, since households took advantage of low interest rates after the pandemic to invest in …

We must incentivize household savings for fast economic growth
1 year, 6 months ago

We must incentivize household savings for fast economic growth

Live Mint  

Prime Minister Narendra Modi has given a clarion call for India to become a developed country by 2047 when we celebrate 100 years of India’s independence. However, this alone is not a good enough explanation, since India has gone through slower GDP growth phases in the past as well without witnessing such a steep decline in household savings. We argue …

FY23 GDP growth hits 7.2% after a strong Q4
1 year, 6 months ago

FY23 GDP growth hits 7.2% after a strong Q4

Hindustan Times  

The Indian economy grew at 7.2% in the fiscal year 2022-23, positively surprising most analysts and exceeding the government’s own projection of 7% GDP growth. GDP growth in the quarter ending March 2023 was 6.1%, which is a full percentage point higher than the median forecast of 5.1% by a Bloomberg poll of economists. While goods and services exports grew …

Budget 2023 may peg gross borrowing under ₹16 trillion: Report
1 year, 10 months ago

Budget 2023 may peg gross borrowing under ₹16 trillion: Report

Live Mint  

India's federal government is likely to keep its gross market borrowing below ₹16 trillion for 2023/24 as it does not want to destabilise the bond market with any negative surprises, two sources close to the deliberations said. The government has so far raised ₹12.93 trln up to Jan. 27, which is 91% of the overall gross borrowing target of ₹14.21 …

Financial situation of many households will be better than last year, but uncertainty remains
1 year, 11 months ago

Financial situation of many households will be better than last year, but uncertainty remains

NL Times  

The financial situation of many households will look better this year than in 2022, with the National Institute for Household Information reporting that the purchasing power of some households has increased by more than 8 percent. "All these measures provide a financial breathing space that most people desperately need, because in 2022 everyone had to save heavily and prices in …

Savings fuel India's post-pandemic spending spree
2 years, 2 months ago

Savings fuel India's post-pandemic spending spree

Live Mint  

MUMBAI : Indian households’ savings rate fell to the lowest in five years in the year ended 31 March as people drew on their savings to indulge in a post-pandemic spending spree, even as inflation eroded their purchasing power. Gross financial savings of households stood at 10.8% of India’s gross domestic product in FY22, falling sharply from 15.9% in FY21, …

Small Savings Scheme: Will Govt Raise Interest Rates For October-December 2022?
2 years, 2 months ago

Small Savings Scheme: Will Govt Raise Interest Rates For October-December 2022?

News 18  

Interest rates on small savings schemes, including PPF, Sukanya Samriddhi Yojana and Senior Citizens Savings Scheme, have remained unchanged since the first quarter of 2020-21. A senior banker told news18.com that the government will monitor the country’s liquidity position and inflation before deciding on the interest rates of small savings schemes. The finance ministry had said, “The rates of interest …

From steady growth to lower inflation: 6 key takeaways from RBI Annual Report 2022-23
2 years, 10 months ago

From steady growth to lower inflation: 6 key takeaways from RBI Annual Report 2022-23

India Today  

The Reserve Bank of India on Tuesday released its annual report 2022-23, where it shed light on different aspects of the Indian economy, ranging from GDP growth to inflation. Moderate inflation risks The RBI said inflation has moderated with downward corrections in global commodity and food prices and “easing of the pass-through from high input cost pressures of last year”. …

Household distress to delay recovery, slash fuel taxes now: SBI report
3 years, 5 months ago

Household distress to delay recovery, slash fuel taxes now: SBI report

The Hindu  

India’s economic recovery could be delayed due to the rising financial stress on households, and with inflation adding to their woes, a State Bank of India report has called for urgent cuts in fuel taxes arguing that high oil prices not only spur further inflation but are also forcing consumers to spend less on other items. While retail inflation moderated …

Across Indian cities, car, house purchase plans take backseat
3 years, 11 months ago

Across Indian cities, car, house purchase plans take backseat

Live Mint  

The ongoing economic crisis has taken a heavy toll on personal finances of Indian citizens. These are some of the key findings of the latest round of the YouGov-Mint-CPR Millennial Survey, which asked a range of questions relating to the financial status and well-being of nearly 10,000 respondents spread across 203 cities and towns of the country during October and …

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