look news india
Shocking figures have emerged regarding household savings and loans. It may be a shock to know that household financial savings in India are set to reach a five-year low in 2023. A graph of decline in financial savings has been recorded. The reason for which is believed to be increase in loan availability. Credit given by households increased by 73% and savings increased by only 14%.
The net domestic savings of the people of India has come down to Rs 14.2 lakh crore in the financial year 2023. Which is the lowest figure in the last five years. The savings figure of people in the financial year 2022 was Rs 17.1 lakh crore. Whereas the total savings of people in the financial year 2023 was Rs 29.7 lakh crore. Also, the total figure of loan is Rs 15.6 lakh crore. Also, in the financial year 2022, total savings were Rs 26.1 lakh crore and total debt was Rs. Was 9 lakh crores. Financial liabilities of households have increased by 73 percent in fiscal year 2023, while savings have increased by only 14 percent. The decline in people's savings has been attributed to the significant increase in short-term loans. This has come to light in the data released by the government.
Experts believe that due to easy and fast access to credit, people are borrowing money and spending large sums, which could be one of the reasons for the decline in savings. Net financial savings of households as a percentage of GDP stood at 5.3 per cent in FY23, the lowest in almost a decade. Between FY 2012 and FY 2022 (except Corona year 2021), the net financial savings are between seven percent and eight percent.