Declining trends of Household Savings a serious challenge for Indian Economy.

✅Declining trends of  Gross Savings a serious challenge to GDP growth and Macroeconomic stability.

✅Govt should Cut non Productive Expenditure.

Households are the biggest source of national savings.Household savings main supplier of funds to both the ☑️Corporate and the ☑️Government sector In any economy.

Household savings are important because an economy with low savings rate is unable to fund its investment needs domestically. Such countries generally borrow from abroad to fund their investment needs and hence run a current account deficit.

but  fact is that india’s gross savings fell to ⏬30% of the gross domestic product in fiscal 2019 from 34.6% in fiscal 2012, and 36% in 2007-08, data from the Central Statistical Organisation shows.

⏬National Savings-
✔Gross #Savings (1991-2019).
India’s household-sector savings, the biggest source of investment for the economy.
But India’s gross savings fell to ⬇️30% of the gross domestic product in fiscal 2019 from 34.6% in fiscal 2012, and 36% in fiscal 2008....it was 24% in fiscal 1991.

⏫National Budget-
✔ But National #Expenditure size (Budget) grows⏫ 27 times (1991-2020).
The size of India's Budget for 2020-21  huge at Rs 30 lakh crore.
In the 1991-92, the Budget  expenditure was  Rs 1.13 lakh crore.

 ⏫Per capita income-
✔National #Per capita income up ⏫ 6.7 times(1991-2019).
India's per capita income was $2000 in year  2019, it was just $ 300 in year 1991,up 6.7 times.

⏫National GDP-
✔National #Economy up⏫ 11 times (1991-2019).
Current  national  GDP $2960 billion ,it was $266 billion in year 1991.


I would like to add Economic Survey 2020: Thalinomics  stated that – Households save nearly Rs 12,000 per year since FY16 on low food prices.

I would also like to add that the total balance in 36cr Jan Dhan account crossed  RS 1lakh cr (100495 cr) on July 2019.


Unfortunately,in the last few years India's national savings has decline, which is a serious challenge for Indian Economy,so govt should cut non Productive Expenditure....I am not talking about subsidy, India is a welfare state, democratic country.
I think India facing savings Crisis due to huge trade imbalances,huge import bill.
For example India is a agro based country ,but edible oil import bill 90,000cr , pulse import bill 20,000cr.