45 percent of households expect savings to decline by 25% in 2025

AHMEDABAD: Only 24% or 1 in 5 Indians expect their household income to increase in the year 2025, which has just started. A recently released survey revealed that 45 percent of households expect savings to decline by up to 25% in the new calendar year.

In a survey by LocalCircles, based on responses from 16,111 individuals, when asked about their household savings in 2025, only 27% said they expected their savings to grow. On the other hand, 45% of the households surveyed expect savings to decline by up to 25% this calendar year.

Indians have cut discretionary spending in 2024 due to a slowdown in income growth among most households, coupled with persistently high food inflation, with retailers reporting lower-than-expected growth in sales of electronics, home appliances and personal vehicles.

The Reserve Bank’s November forward-looking surveys showed that Indian households expect inflation to rise further in the new calendar year, even as weak sentiment has dented consumer confidence. A survey of household inflation expectations shows that a slightly larger share of respondents expect prices and inflation to rise compared to the September 2024 round.

Households’ average perception of current inflation rose 30 basis points to 8.4% from 8.1% in September.