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Household savings likely to increase in FY2024, CRISIL reveals in report
The CRISIL report notes that since the pandemic, households have been borrowing faster than they are saving which has led to a decline in net household financial savings, obtained by adjusting financial savings for liabilities. It was further said that the slowdown in private consumption in FY24 despite GDP growth also indicates increasing savings for households.
A branch of the domestic rating agency said on Tuesday that household savings are likely to increase in the financial year 2023-24. CRISIL Market Intelligence and Analytics said there are early indicators that show that household savings will improve in FY24, while the growth in household liabilities will slow.
"Proxy data indicates a rebound in the overall savings rate in FY24, led by households," it said in a note. Also said that domestic savings constitute 60 percent of the total savings in the economy. It is worth noting that official data released last year showed a dramatic decline in India's net financial domestic savings rate from 7.3 percent in FY22 to a 47-year low of 5.3 percent.
The CRISIL report notes that since the pandemic, households have been borrowing faster than they are saving, leading to a decline in net household financial savings, obtained by adjusting financial savings for liabilities.
