Statsguru: Six charts explain the cost of lower financial savings

Households are said to have borrowed more to increase consumption

The last time Indian households recorded such low net financial savings was nearly a decade before Kapil Dev led India to its first Cricket World Cup victory. The net financial savings of Indian households came in at 5.1 per cent of gross domestic product (GDP) in 2022-23, the lowest since 1975-76 when it was at 4.7 per cent. There has been a marked decline since 2018-19, when it was 7.9 per cent (chart 1).

 

Money saved through bank deposits has come down, as has been the allocation to life insurance schemes. Small savings schemes, too, have been affected (chart