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Reverse the trend

Investments for various productive activities in the realty sector are sluggish

Business Standard 

Apropos the editorial, “rush, again” (July 13), the propensity of households for investing in the yellow metal is increasing rapidly and leading to the channelling of savings into unproductive This would otherwise be essential to augment for economic growth and social development. Despite the presence of a developed financial market and the availability of a number of financial products, the savings habit of households is skewed towards investing in  

Hardly any of the savings in this particular segment is flowing to capital markets due to low risk appetite and inadequate financial literacy. Investments for various productive activities in the realty sector are sluggish because of persisting uncertainties. Financial products of banks and other financial institutions, though comparatively safer, are now not attractive enough due to diminishing returns and people preference for converting their into

Illiteracy about new and fear of higher taxation are prompting savers to block their money in the form of This trend needs to be reversed to enable the flow of these savings for augmenting Revisiting the income tax structure and prices of various financial products is essential in this respect. Increasing volume of imports is negatively affecting the current account deficit and is detrimental to the growth of the economy.

V S K Pillai   Visakhapatnam

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First Published: Sun, July 16 2017. 22:30 IST