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- Household Savings India Data | Household Financial Savings Drop According to Reserve Bank Of India Data
MumbaiOne hour ago
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The corona pandemic has taken a toll on household savings. According to the initial estimates released by the Reserve Bank of India (RBI), household savings declined to 8.2% of GDP in the third quarter (October-December) of the financial year 2020-21, from 10.4% in the second quarter and 21% in the first quarter. .
The ratio of net savings to GDP in the first 9 months is the highest in 20 years
If we look at the figures for the first nine months of the last financial year in totality, the pattern of financial savings is not too bad. The average of household savings during April-June, 2020 is attractive. The ratio of net household financial savings to gross domestic product (GDP) stood at 12.5% in the first nine months of 2020-21, the highest in at least 20 years.
Expenditure increased in epidemic, but income decreased
Net family savings grew by 58.4% to Rs 17.52 lakh crore in the first 9 months of 2020-21 from Rs 11.06 lakh crore in the first 9 months of 2019-20. Yet, quarter-on-quarter savings in savings have meant that while family incomes fell during the pandemic, expenses went up.
Liability increased less, so there was a jump in savings
Gross domestic financial savings jumped 45.4% to Rs 21.78 lakh crore in April-December, 2020 from Rs 14.98 lakh crore in the same period a year ago. During this period, the family liability increased by 8.6% to 4.26 lakh crore from 3.92 lakh crore. Obviously, the family liability grew less in the last financial year.