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Domestic savings were 17.2 lakh crore, which decreased to 5.2 lakh crore in the first half
Inflation cuts pocket: Domestic savings were 17.2 lakh crore, which decreased to 5.2 lakh crore in the first half
Inflation is eating away at our savings. The country's net financial savings (NFS) stood at just 4% of GDP in the first half of the financial year 2022-23, compared to 7.3% in the first half of 2021-22. Financial savings stood at 12% of GDP in the financial year 2020-21. If converted into an amount, the financial savings in the first half of 2022-23 stood at Rs 5.2 lakh crore, which was around Rs 17.2 lakh crore in the previous financial year 2021-22.
Not only this, there has been a decrease in gross savings along with financial savings. Gross savings stood at 15.7% of the country's GDP. This is also the lowest in 30 years. It has averaged 20% of GDP in the last five years.
Investment firm Motilal Oswal has released this report after analyzing RBI data. Prices have increased in all major consumer sectors like petrol-diesel, FMCG, and automobiles. It has dented the pocket of the common man. According to the report, even though financial savings have been affected by inflation, physical savings in property and gold have remained the same.
