The Reserve Bank of India (RBI) recently released figures for net household financial savings (flow) during 2023-24. These savings stood at 5.3% of gross domestic product (GDP), up slightly from 5% in 2022-23. In 2019-20, they stood at 8.1%. The pandemic broke out in March 2020 and in 2020-21 these savings jumped to 11.5%. So, what do these figures tell us?
First, net household financial savings have come down significantly over the years. In 2018-19, before the pandemic, they stood at 7.9% of GDP.
Second, in the post-pandemic world, income growth for an average Indian has been slow, and given that they have had to spend a greater proportion of their income to meet expenses, household financial savings have fallen. One possible explanation could lie in the fact that more people are working in agriculture now than before the pandemic.
Third, high food inflation from 2022-23 seems to have led to a greater proportion of income being spent. From April to November this year, food inflation, which forms nearly two-fifths of the consumer price index, has averaged 8.4%. It averaged 7.3% and 6.9% during the same period in 2022 and 2023, respectively. With quite a few state governments launching cash distribution schemes, food inflation is likely to remain high.
Denne historien er fra January 02, 2025-utgaven av Mint Kolkata.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra January 02, 2025-utgaven av Mint Kolkata.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
IMF Keeps India's GDP Growth Outlook at 6.5%
Global growth is expected to remain stable, albeit lacklustre in 2025: IMF
What happened to India's fast bowlers?
In October last year, when New Zealand came visiting for a Test series in India, captain Rohit Sharma spoke about the necessity to create a strong pool of fast bowlers.
Following the trail of Darjeeling Sherpas
Over the course of 12 years, Nandini Purandare and Deepa Balsavar have documented the struggles and challenges of Sherpas
Anand Group eyes growth as EV shift drives demand
Anand Group's sunroof business has emerged as a standout performer, with capacities already at full utilization
The heartiness of white beans
Bean varieties are staggering, and their nomenclature can be confusing. For example, white beans are also called navy beans—a term not related to the color navy but because the US Navy served these beans to their sailors since the mid-1800s.
Coping in a world of work
A fortnightly column about emotional well-being Workplace resilience is more about the culture created within an organisation than about individual employees
Sebi rejects KOEL's bid over DFS disclosure
The Securities and Exchange Board of India (Sebi) has opposed an appeal filed by Kirloskar Oil Engines Ltd (KOEL) in the Securities Appellate Tribunal (SAT) challenging the regulator's advisory to the company to disclose the Deed of Family Settlement (DFS).
Tech Mahindra, Wipro Q3 revenue shrinks; margins up
HCL Technologies Ltd. Infosys reported a revenue of $4.94 billion, up 0.92% sequentially; whereas HCLTech's revenue rose 2.55% to $3.53 billion.
Where Are Indians Headed In 2025?
Community, immersive experiences and personal growth—Indian travellers are attempting to ditch the herd mentality and travel to expand their horizons, and connect with themselves
How the Wheels of Oppression Keep Turning
Kavery Nambisan's new novel, telling a story of religion, caste and gender, shows her at the top of her game
