Indians turn to saving more, push back retirement in the wake of covid-19
4 years, 3 months ago

Indians turn to saving more, push back retirement in the wake of covid-19

Live Mint  

The covid-19 pandemic has not only claimed jobs and livelihoods for many Indians but has consequently depleted their savings as well. Shrinking savings “Over the last year, the combined impact of the recession, the pandemic and the lockdown has meant that people have less money at hand, whether to spend or save. This year’s survey, conducted among 650 working professionals aged between 22 and 45, across five Indian cities, showed that average savings stood at 32% of income levels, having witnessed a 6% drop from the last year’s average of 38%. “While last year’s report had shown that interest income from investments was one of the top three reasons people were investing, this year, it has fallen to the fifth place,” he said. Expectedly, emergency savings have become the biggest reason for saving for 70% of the people compared with 32% last year,” he said.

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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 …

How young Indians are saving and investing in 2024: Stocks surge ahead of Mutual Funds as top investment choice
1 month, 1 week ago

How young Indians are saving and investing in 2024: Stocks surge ahead of Mutual Funds as top investment choice

Live Mint  

Fin One, a digital-first project by Angel One Limited, has provided insightful information about the changing financial habits of Gen Z and Millennials in India. It has unveiled its Fin One: Young Indians’ Saving Habits Outlook 2024, offering valuable insights into the evolving financial behaviours of Millennials and Gen Z across India. According to a data compiled by top research …

Opinion: Budget 2024 - Optimism scores over the sting of inflation
10 months, 3 weeks ago

Opinion: Budget 2024 - Optimism scores over the sting of inflation

India Today  

Before we delve deeper into the details of the exclusive CVoter survey of Indian consumers on the eve of the Interim Budget 2024-25, let’s highlight just one data point that reaffirms the view of various pundits and opinion polls that the Narendra Modi regime is in pole position to win the 2024 Lok Sabha elections. In 2024, close to 46 …

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 …

The tumble in India’s savings rate needs to be reversed
1 year, 3 months ago

The tumble in India’s savings rate needs to be reversed

Live Mint  

A farmer has to set aside a portion of the seeds from his harvest to be used for next year’s sowing. The intuition that a high savings rate sustains high growth has been tested and confirmed across the world and has withstood all macroeconomic crises and business cycles. Much of the East Asian long-term miracle growth was predicated on a …

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 …

Family’s financial security becomes ’top life goal’ post- Covid pandemic: Survey
1 year, 10 months ago

Family’s financial security becomes ’top life goal’ post- Covid pandemic: Survey

Live Mint  

In a survey, conducted by Bajaj Allianz, it is found that people are focusing more on providing financial security for their families after the Covid pandemic. Bajaj Allianz's Life Goals Preparedness Survey 2023 revealed that 71% of Indians have prioritised 'family's financial security' over other life goals. Besides, career growth, travelling abroad and ensuring adequate care for aging parents are …

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, …

How Indians plan their retirement, in 5 charts
2 years, 7 months ago

How Indians plan their retirement, in 5 charts

Live Mint  

Most Indians expect their children to provide them financial stability when they get old, with 28% yet to start saving for retirement, a new survey has found. Rural Indians know less of old-age financial planning needs, and also save less, often due to uncertain income flows, found the ‘Digital and Financial Inclusion Barometer’ survey by Sambodhi, a research group, and …

Economy may take more than a decade to overcome COVID-19 losses: RBI report
2 years, 7 months ago

Economy may take more than a decade to overcome COVID-19 losses: RBI report

The Hindu  

The Indian economy may take more than a decade to overcome the losses caused by the outbreak of COVID-19 pandemic, according to Reserve Bank of India’s Report on Currency and Finance. Taking actual growth rate of 6.6% for 2020-21, 8.9% for 2021-22 and assuming growth rate of 7.2% for 2022-23 and 7.5% beyond that, India is expected to overcome COVID-19 …

Indian economy recovered \'handsomely\' from pandemic-induced disruptions: Panagariya
2 years, 10 months ago

Indian economy recovered \'handsomely\' from pandemic-induced disruptions: Panagariya

Deccan Chronicle  

New Delhi: The Indian economy has recovered 'handsomely' from the pandemic-induced disruptions, former Niti Aayog Vice Chairman Arvind Panagariya said on Tuesday, while expressing hope that the recovery will be sustained and the growth rate of 7 to 8 per cent will be restored. While an advanced estimate by the Ministry of Statistics & Programme Implementation places India's GDP growth …

State of working India 2021: The pandemic’s impact on the economy in India
3 years, 5 months ago

State of working India 2021: The pandemic’s impact on the economy in India

Hindustan Times  

This report documents the impact of one year of Covid-19 in India, on jobs, incomes, inequality, and poverty. On top of this, there were legacy problems such as a slow rate of job creation and lack of political commitment to improving working conditions which trapped a large section of the workforce without access to any employment security or social protection. …

Indians prefer job guarantee over everything else. This is the top reason
3 years, 5 months ago

Indians prefer job guarantee over everything else. This is the top reason

Live Mint  

A majority of urban Indians left unemployed by the coronavirus pandemic want the government to guarantee them jobs like it does for people in rural areas, says a study by the London School of Economics. An overwhelming 82% of respondents surveyed for the report ‘City of dreams no more, a year on: worklessness and active labour market policies in urban …

Indians aren’t spending—‘Marriage can wait. I’m saving for covid emergencies’
3 years, 10 months ago

Indians aren’t spending—‘Marriage can wait. I’m saving for covid emergencies’

Live Mint  

Most Covid-19 restrictions have been lifted as cases have plunged, but Indians are still stashing away their rupees and building bank balances. “There’s this huge mountain of money out there which people have been able to save” and could power growth, said Pranjul Bhandari, chief India economist at HSBC. The country once had the world’s fastest-growing economy, but India’s gross …

Staying Fit and Saving Money Are Indians' Top Resolutions for 2021, Reveals News18 Survey
3 years, 11 months ago

Staying Fit and Saving Money Are Indians' Top Resolutions for 2021, Reveals News18 Survey

News 18  

A new year is synonymous with resolutions. A survey carried out by YouGov in association with News18 shows that 45 percent Indians choose to stay fit and exercise daily– this is one of their top three resolutions for 2021. Following the need to stay healthy and hygienic, 26 percent Indians plan to invest in health plans and securities and Gen …

Indian economy reviving at unforeseen pace: RBI
4 years ago

Indian economy reviving at unforeseen pace: RBI

India TV News  

As economic activities gather momentum and strive to get back to pre-Covid levels, the Reserve Bank of India has said that the Indian economy is reflating at a pace higher than most predictions. The monthly bulletin of the central bank for December said more evidence has emerged since the last bulletin which shows that the Indian economy is coming out …

The millions whom nobody seems to care much about
4 years ago

The millions whom nobody seems to care much about

Live Mint  

As the covid pandemic continues, the Narendra Modi government has spent trillions of rupees to aid the poor. Pew Research Center defines the middle class as households that have an annual pre-tax income that is at least two-thirds to double the national median. Since very few people in Uttarakhand, Himachal Pradesh or the North East would need a cooling device, …

Indians look to delay retirement as covid-19 shrinks savings
4 years, 3 months ago

Indians look to delay retirement as covid-19 shrinks savings

Live Mint  

The covid-19 pandemic has depleted the savings of many Indians. An annual report, titled Bankbazaar Savings Quotient, shows that the pandemic has resulted in shrinking of savings, compelling many Indians to reorder their priorities. Shrinking savings “Over the last year, the combined impact of the recession, the pandemic and the lockdown has meant that people have less money in hand. …

Opinion | Fiscal spending will have to do the heavy lifting
4 years, 3 months ago

Opinion | Fiscal spending will have to do the heavy lifting

Live Mint  

India’s June-quarter data reaffirmed the stark weakness in economic activities. Such a dent is leading to major headwinds for private final consumption expenditure, which, with about two-thirds share in overall GDP and usually strong growth momentum, typically provides a strong bedrock for India’s growth. While monetary policy reacted with commendable alacrity with large rate cuts and a heavy dose of …

Sobering assessment: The Hindu Editorial on RBI’s annual report
4 years, 3 months ago

Sobering assessment: The Hindu Editorial on RBI’s annual report

The Hindu  

Three weeks after its monetary policy committee decided to hold fire on interest rates amid accelerating retail inflation, the Reserve Bank of India has forecast more pain for the economy. Its assessment of the economic landscape and its prognosis for near-term prospects posit a stark picture: of demand hollowed out by the severe shock to private consumption, public finances strained …

Pandemic spurs more private sector enrolments in NPS
4 years, 5 months ago

Pandemic spurs more private sector enrolments in NPS

The Hindu  

The uncertainties emerging out of the COVID-19 pandemic seem to have expedited enrolments in the National Pension System, a voluntary defined contribution pension scheme of the Government of India, as many private sector employees and employers were found to be seeking financial security, post retirement, through pension schemes. As per data released by the Pension Fund Regulatory and Development Authority, …

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