Household Financial Savings

Today's Best of BS Opinion covers US tariff threats linked to Russian oil, the Grok AI content debate, small finance banks' record, cracks in India's growth story, and a Cold War spy tale

Motilal Oswal report shows assets have grown at a faster pace since the pandemic

Currently, family expenses, with an uncertainty score of 78, are the biggest concern among Indians, followed by health and life-related worries

A Redseer survey on low to middle income households found that 65% respondents relied on family and friends for financial support, citing medical emergencies as a major cause for savings depletion

If corporate investment starts rising, pushing the investment rate (as a percentage of GDP) higher, low NFS will be hard to ignore and likely to hamper a balanced surge in growth

A report by Motilal Oswal said that households' net savings plummeted to a six-year low level of 18.4 per cent of GDP

Households are said to have borrowed more to increase consumption

Recovery in real estate, rise in property prices attracted savings

Only one among BRIC countries to have cut leverage to levels to pre-pandemic levels

Evolved users should opt for the traditional approach of tracking expenses and eliminating frivolous ones

Lower consumption at the bottom of the pyramid will affect growth

Ignoring it for long could increase longer-term costs

Savings more precautionary than productive, consumer demand unlikely to improve soon

India's gross savings fell to 29 per cent of GDP in FY20 as per UBS' estimates from 34.6 per cent of GDP in FY12

However, much of this increase was in the form of cash