At 4% of GDP, household financial savings touch 30-year low; consumption up

In FY22, savings stood at 7.3 per cent. This fall in savings indicates an increase in consumption

Recent estimates suggest that the net financial savings of households in India fell to a three-decade low of around 4 per cent of the Gross Domestic Product (GDP) in the first half of the current fiscal, the Financial Express reported.

In FY22, the savings stood at 7.3 per cent. This fall in savings indicates an increase in consumption. 

The net household financial savings are estimated to have been around Rs 5.2 trillion in the first half of 2023 compared to Rs 17.2 trillion in FY 2022. There are chances that the trend might reverses, but if savings don’t pick up