The Aryavarth Express
Agency (New Delhi): According to the latest National Account Statistics 2024 from the Ministry of Statistics and Programme Implementation, net household savings in India saw a sharp decline of Rs 9 lakh crore over three years, falling to Rs 14.16 lakh crore in 2022-23.
Net household savings peaked at Rs 23.29 lakh crore in 2020-21 but have been decreasing since then. In 2021-22, the savings dropped to Rs 17.12 lakh crore and further decreased to a five-year low of Rs 14.16 lakh crore in 2022-23. The last low was Rs 13.05 lakh crore in 2017-18, followed by increases to Rs 14.92 lakh crore in 2018-19 and Rs 15.49 lakh crore in 2019-20.
Despite the decline in savings, investments in mutual funds and shares have seen a significant rise. Investment in mutual funds almost trebled to Rs 1.79 lakh crore in 2022-23, up from Rs 64,084 crore in 2020-21. It was Rs 1.6 lakh crore in 2021-22. Similarly, household investment in shares and debentures almost doubled to Rs 2.06 lakh crore in 2022-23 from Rs 1.07 lakh crore in 2020-21, though it dipped slightly from Rs 2.14 lakh crore in 2021-22.
Additionally, household bank advances (loans) have doubled over three years to Rs 11.88 lakh crore in 2022-23 from Rs 6.05 lakh crore in 2020-21. In 2021-22, these advances stood at Rs 7.69 lakh crore. Loans to households by financial corporations and non-banking financial corporations also saw a fourfold increase, reaching Rs 3.33 lakh crore in 2022-23, up from Rs 93,723 crore in 2020-21. This figure was Rs 1.92 lakh crore in 2021-22.
These trends highlight a significant shift in the financial behavior of households, with a notable decrease in savings and an increase in investments and loans.
