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Podcast: In Focus by The Hindu
Episode: Decoding the historic decline in financial savings of Indian households
Description: The net financial savings of households in India has fallen to a five-decade low of just 5.1% of the GDP in FY 2023. It was 7.2% in FY 2022. This is a worrying development, because a high savings rate has traditionally correlated with a healthy growth rate.Data released by the RBI also shows that at the same time that household savings have fallen, financial liabilities of households have risen sharply – from 3.8% of GDP in FY 2022 to 5.8% in FY 2023. This is not good news, when viewed alongside the high inflation and high interest rates that we have right now.So...