How to address India's falling household savings
20 hours, 21 minutes 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 flexible deposit options. Strengthening public savings platforms: Revamping post office savings schemes and initiatives like Kisan Vikas Patra or Public Provident Fund with better returns and easier access could encourage households to return to traditional saving methods. A collaborative effort involving the government, financial institutions, and private players can ensure that savings remain central to Indian households, safeguarding both their futures and the nation’s economic stability.

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History of this topic

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 …

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 …

India logs fall in inequality between 2011-12 and 2022-23, says govt report
6 months, 2 weeks ago

India logs fall in inequality between 2011-12 and 2022-23, says govt report

Hindustan Times  

Inequality in both rural and urban areas of India fell between 2011-12 and 2022-23, according to a full report on Household Consumption Expenditure released on Friday by the National Sample Survey Office. The full report released Friday shows a fall in the Gini coefficient, a commonly used measure of inequality, for both rural and urban spending between 2011-12 and 2022-23 …

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 …

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 …

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 …

Real GDP growth may hit 8% this fiscal year, signals FinMin
9 months ago

Real GDP growth may hit 8% this fiscal year, signals FinMin

The Hindu  

India’s economy may well end up growing by about 8% this fiscal, outstripping the 7.6% real GDP growth projected by the National Statistical Office, the Finance Ministry signalled on Friday, citing the continuing momentum in economic activity in the ongoing final quarter of 2023-24. Despite risks such as “hardening crude oil prices” and “global supply chain bottlenecks to trade”, the …

SBI Research backs NSSO report, credits Modi govt for decline in India's consumption inequality
9 months, 3 weeks ago

SBI Research backs NSSO report, credits Modi govt for decline in India's consumption inequality

Op India  

On Tuesday, a research report published by the State Bank of India corroborated the findings of the Household Consumption Expenditure Survey, which was conducted by the National Sample Survey Office. Decadal changes in MPCE show decline in consumption inequality, graphic via SBI Research “Rural Poverty has thus staged a significant 440-basis point decline since 2018-19 and Urban Poverty a 170-basis …

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 …

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 …

60% households expect decline in income, seek relief in budget: Survey
1 year, 10 months ago

60% households expect decline in income, seek relief in budget: Survey

Hindustan Times  

More than half of households in a survey conducted online across 309 districts expect a decline in their income by up to 25 per cent and dip in savings, and are looking for relief in the coming budget, online platform LocalCircles said on Sunday. Read here: Budget 2023: Delhi traders write to FM Sitharaman, seek relief for middle class 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, …

A poverty trend in search of an explanation
2 years, 6 months ago

A poverty trend in search of an explanation

The Hindu  

A noticeable absence in the blitzkrieg of information on the economy periodically unleashed by the Union government over the past few years has been estimates of poverty. While the level of poverty estimated by these two studies varies considerably, with the one by Roy and van der Weide showing twice the poverty level estimated by Bhalla et al., they share …

Private consumption expenditure and demand: Please ma’am, we need some more
2 years, 10 months ago

Private consumption expenditure and demand: Please ma’am, we need some more

Live Mint  

Slowdown in personal consumption is the single biggest problem facing our economy. The double whammy of lower employment and Covid-19 has meant a significant reduction in consumption for low and lower-middle income households. This has meant a delayed recovery on many key sources of consumption – automotive, high value durables, OOH and discretionary spends like retail, restaurants and personal care. …

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 …

Indian House Prices to Fall 6% This Year, Risk to Downside Due to Covid-19, Says Study
4 years, 2 months ago

Indian House Prices to Fall 6% This Year, Risk to Downside Due to Covid-19, Says Study

News 18  

Indian house prices will fall more sharply this year than expected just three months ago amid surging coronavirus cases which are hurting demand in an economy fighting its deepest recession on record, a Reuters poll showed. The poll predicted average house prices to shrink 6.0% this year and 3.0% next year, which would be the first annual fall since records …

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. …

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 …

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