Family Savings Decline:India has been called a country of savings. Due to this habit of saving, India easily faced huge problems like the global economic recession of 2008. But now surprising figures have come to light. The savings of Indian families are continuously decreasing. But, the number of houses and vehicles they own has increased rapidly. However, according to economists, the debt repayment capacity of Indian families is still higher than that of the major economies of the world.
Net savings figure of Indian families decreased by 4 percent
According to official data, the net savings figure of Indian households has declined by about 4 percent in the last two years. In the financial year 2022-23, it has been 5.1 percent of GDP. Whereas in 2020-21 the same figure was 11.5 percent. At present it has gone far below the long standing average figure of 7 to 7.5 percent. People of India are now spending more money on buying real estate and vehicles. Due to this their debt has increased. Still, the ability to repay the debt of Indians is still more than the big countries of the world.
Indians are using their savings to buy property and vehicles
Indian families may get into trouble in difficult times due to reduction in savings. Still, he is rapidly increasing his debt. Their financial liabilities have reached 5.8 percent of GDP in the financial year 2022-23. In the financial year 2021-22, this figure was 3.8 percent. However, according to the recent analysis of the Reserve Bank, the figure of decline in savings is currently stable. There is no need to worry about this as Indian households are using their savings to buy properties and vehicles.
India's debt service ratio to be 6.7 percent in March, 2023
According to the report, India's debt service ratio was 6.7 percent in March 2023. The same figure was 7.8 percent in America, 7.5 percent in Japan, 8.5 percent in Britain, 14.3 percent in Canada and 14.1 percent in Korea. India's situation is better in this matter than many emerging countries of the world.
Read this also
Get more latest business news updates