But now it appears that something is wrong. The Reserve Bank of India has released new data indicating that net household savings in India have reached a 47-year low. The total amount of money and investments that a family has, such as stocks, deposits, and bonuses, less any money they owe, such as debt and loans, is known as household net savings.
In the fiscal year 2023, savings as a percentage of GDP decreased from 7.3% in 2022 to 5.3%. This decrease was described as “dramatic” by one economist.
During the same time frame, household debt also experienced a significant increase. The annual percentage of GDP borrowed was 5.8%.
