 "investment streams")
As Trumponomics affects the valuation of different investment streams, it may be a good time to assess how Indian households’ preferences are changing.
The share in gross domestic product (GDP) of Indian households’ net financial savings – the difference between financial asset and liability flows – fell to a five-decade low of 5 per cent in 2022-23, before inching up to 5.3 per cent in 2023-24 (Chart 1). This means households’ financial assets now are not growing as fast as liabilities. The government has downplayed this phenomenon by saying houses and other consumer durables are being purchased on mortgage.
