India’s household savings rise to Rs 54.6 lakh crore in FY24: MoS

New Delhi, Aug 5 Household savings in India have risen steadily in value terms, reaching Rs 54.6 lakh crore in 2023-24 compared to Rs 38.5 lakh crore in 2019-20, the Parliament was informed on Tuesday.

Similarly, gross domestic savings have also grown in absolute terms -- from Rs 59.4 lakh crore in 2019-20 to Rs 92.6 lakh crore in 2023-24, Minister of State for Finance, Pankaj Chaudhary, said in a written reply to a question in the Rajya Sabha.

“In percentage terms, they have remained broadly stable at around 30 per cent of GDP, which reflects continued domestic resource mobilisation to support investment needs,” the minister said.

The figures also show that household financial liabilities have increased over the years, rising from 3.9 per cent of GDP in 2019-20 to 6.2 per cent in 2023-24.

“At the same time, total bank credit has improved steadily, climbing from Rs 103.7 lakh crore in 2019-20 to Rs 159.01 lakh crore in 2023-24,” the Minister of State mentioned.

Despite global economic uncertainties, Pankaj Chaudhary said that the gross fixed capital formation in the economy has remained robust at around 30 per cent of GDP.

He added that private investment activity continues to be supported by strong macroeconomic fundamentals, including healthy GDP growth and fiscal and external stability.

Meanwhile, the minister on Monday said that the government has been carrying out several reforms to make it easier to do business, attract more investments, and boost economic growth.

He said these reforms include steps under the Ease of Doing Business programme such as the Business Reform Action Plan (BRAP), Business-Ready assessment, the Jan Vishwas initiative, and efforts to reduce compliance burdens for businesses and citizens.

According to the latest Provisional Estimates released by the Ministry of Statistics and Programme Implementation, India’s GDP at constant prices grew by 6.5 per cent in 2024-25.

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