India’s household savings surge due to tax reforms: Minister
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New Delhi: The household savings in India increased from Rs 50.1 lakh crore in 2022-23 to Rs 54.61 lakh crore in 2023-24, the government said on Monday.
As a per cent of GDP, household savings declined from 18.6 per cent in 2022-23 to 18.1 per cent in 2023-24, as per National Account Statistics 2025 published by the Ministry of Statistics and Programme Implementation, Pankaj Chaudhary, Minister of State for Finance, replied to a question in Lok Sabha.
According to the minister, the government’s focus on ease of doing business, skilling, employment generation, inclusive human resource development as well as creation of infrastructure creates a congenial environment for growth of household income and savings.
“Additionally, the new income tax exemption for annual incomes up to Rs 12 lakh and the recent GST rate rationalisation measures are expected to boost household consumption, savings and investment,” he mentioned.
The government closely tracks the trends in key economic parameters, including household savings, along with their implications for economic growth and fiscal stability.
At present, the macroeconomic fundamentals of the Indian economy remain strong, supported by robust domestic demand, moderating inflation, improved corporate balance sheets and sustained fiscal discipline, said the minister.
Finance Minister Nirmala Sitharaman said last week that the net financial assets of households went up to Rs 9.9 lakh crore or 6 per cent of GDP in FY25, compared to 5.3 per cent in previous fiscal (FY24). Meanwhile, financial liabilities of households dropped sharply to Rs 15.7 lakh crore in FY25 or 4.7 per cent of GDP compared to the previous year, FM Sitharaman said in an X post.
This is a sharp turnaround from just two years ago, when household savings slumped to 4.9 per cent of GDP in FY23 -- lowest since early 1970s. The recovery suggests households are rebuilding financial buffers more quickly than expected as the post-pandemic income revival broadens.
