Page 2 - Household Savings

Pandemic-induced lockdowns boost household savings to 20-yr high: Report

Extra savings pegged at $200 billion, according to a foreign brokerage report

Savings, profits, stocks can't stay high for long amid low income and interest rates

Things that cannot go on forever will not go on forever. There will be a change in the direction of the wind. One must hope it will be slow and calibrated, writes T N Ninan

44% households feel they're spending more to get less, says survey

Indicates Covid-19 pandemic has upended the household budget

Precautionary savings

Slowdown impact on household finances even before Covid

Household savings may rise in Q1, then moderate, say RBI officials

May moderate in subsequent quarters, they say

The determinants of household savings in India

While the proposed changes in tax laws are applauded it is not clear how household savings will move in India in the future

Household financial savings dip to 6.5% of GDP despite new RBI methodology

Financial liabilities, on the other hand, had risen sharply after demonetisation after people heavily stashed cash in bank deposits, insurance schemes, and MFs

Letter to BS: Lowering of interest rates for small savings not a wise move

This is not a wise move at a time when the rate of household savings is falling. India has practically no social security system for the old and the unemployed

Budget consistent with fiscal strategy; aimed at boosting demand

The fiscal multiplied impact of higher government consumption spending is coupled with signal to household sector to spend more

Letter to BS: Demand for goods and services is crucial to boost investment

Domestic investment is depended on the cost of capital and the prevailing elevated lending rates are impediments

Note-ban, GST hit household savings rate, decline may challenge growth: Rpt

Since the household sector is the largest contributor to savings, the overall savings rate declined to about 30 per cent in FY17, after remaining well above 32 per cent for many years

Household savings at two-decade low

At 18.6% of GDP at current prices in FY17, down from a peak of 25.2% in FY10; financial savings at a 2-yr low of 7.8%