Authors

1. Mr.Ashlah Surl
2. Dr. Bhupendra Singh Hada

Affiliation

• Assistant Professor, Career Point University, Kota
• Assistant Professor, Jaipuria Institute of Management, Jaipur

Abstract

India is having a long-tenn oriented culture where people are more focused on their future rather than present. Dueto this the savings rate in India hasalways remained at a significant level. India's savings perfonnance has been quite impressive in a cross-country context. India's gross domestic savings rate inthe recent period is comparable to Indonesia, Thailand and Korea, much lower than that of China, Malaysia and Singapore but much higher than that of many other emerging and advanced economies. India ranked 2"d in terms of gross domestic savings among top 10 economies of the world in the year 2015, just below that of China. The gross domestic savings which stood at around 23 per cent in 1990 has reached around 35 per cent in 2015, well above the wo d average of 23.5 per cent. Various factors which resulted in an increase in gross domestic savings rate are rapid economic growth, large scale migration of rural population to urban area, Rise in income of government employees after 61h pay commission, persistence of saving habits among households, awareness programs by government and financial institutions etc. Household savings has always remained a major component of gross domestic savings followed by private corporate savings and public sector savings. It was the result of high savings rate that the Indian economy stand strong during the global recession of 2008. During the tenth five year plan i.e. from 2002-2007 the increased gross domestic savings was maximum among all. Bank deposits have always remain the most preferred avenue for savings for households. Total deposits in Indian banks crossed Rs.100 billion mark in 2017.

Keywords

Gross Domestic Savings, Household Savings, Private Corporate Savings, Public Sector Savings

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