2023-09-19 21:38:00
Mumbai: In the last financial year (2022-23) there has been a 19 percent decline in household savings in the country, according to the Reserve Bank of India. Total household savings stood at Rs 13.77 lakh crore. This is 5.1 percent of the GDP, according to figures released by the RBI.
Net financial savings of households in 2021-22 was 7.2 percent of GDP. In 2020-21, when Corona spread, household savings rose to 11.5 percent of GDP. This is the highest level in recent times. Because the ways to spend money are limited. 2019-20 Lith was 8.1 percent.
While bank deposits are higher in 2022-23, small savings (excluding PPF) and deposits are down compared to 2021-22.
Loans from commercial banks rose by 54 per cent in 2022-23 from 2021-22. In terms of financial assets of households, there was also a decrease in 2022-23. It has come down to 10.9 percent of GDP in 2022-23 from 11.1 percent in 2021-22. Meanwhile, liabilities increased from 3.8 percent of GDP to 5.8 percent. It is the second highest level in independent India.
Chief Economist Nikhil Gupta pointed out that the net financial savings of households has reached a 34-year low. Liabilities are responsible for the fall in household savings.
Gupta says lower household savings will support consumption and real estate investment in 2022-23.
According to GDP estimates, private consumption is projected to rise by 7.5 percent in 2022-23. But the growth was 11.2 percent in 2021-22. Meanwhile, the gross value added of the financial, real estate and professional services industry is projected to increase by 7.1 per cent in 2022-23. Gupta attributes this to weak income growth and declining household savings.
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