21% drop in household savings

New Delhi: Net household savings declined sharply by Rs9 lakh crore to Rs14.16 lakh crore in three years to 2022-23, according to the latest National Account Statistics 2024 of the Ministry of Statistics and Programme Implementation. The net household savings peaked at Rs23.29 lakh crore in 2020-21. These have been on the decline since then, the data showed. The net household savings declined to Rs17.12 lakh crore in 2021-22 and dipped further to a five-year low of Rs14.16 lakh crore in 2022-23. In FY23, household savings declined by 20.90 per cent. The previous low of net household savings was Rs13.05 lakh crore in 2017-18 which increased to Rs14.92 lakh crore in 2018-19 and Rs15.49 lakh crore in 2019-20.

The data showed that the investment in mutual funds almost trebled to Rs1.79 lakh crore in 2022-23 in three years from Rs64,084 crore in 2020-21. It was Rs1.6 lakh crore in 2021-22. The household investment in shares and debentures almost doubled to Rs2.06 lakh crore in 2022-23 from Rs1.07 lakh crore in three years from 2020-21. It was Rs2.14 lakh crore in 2021-22.