Archive · 15 Jun 2025
India's Household Savings Decline in FY24, Rural Economy Shows Hope
Indian families are saving less of their money.
This trend has been going on for a few years.
Families are also borrowing more money.
However, there's some good news from the countryside.
People in rural areas are earning more, and prices are not rising as quickly.
This is making them feel a bit more positive.
Overall, prices are going up less than before, but some foods are still expensive.
India's household savings decreased to 18.1% of GDP in FY24.
Household financial liabilities increased to 6.2% of GDP.
Wage growth for rural male workers rose by 6.1% year-on-year in February.
Rural consumer confidence is cautiously optimistic, near the neutral 100 mark.
CPI eased to 3.2% in April 2025, the lowest since August 2019.
- Who
- Indian households
- What
- India's household savings declined to 18.1% of GDP in FY24.
- When
- FY24 (financial year 2024), April 2025
- Where
- India
- Why
- Reflects a growing reliance on credit amid consumption needs.
- Household Savings FY24
- 18.1% of GDP
- Gross Domestic Savings FY24
- 30.7% of GDP
- Household Financial Liabilities
- 6.2% of GDP
- Rural Male Worker Wage Growth
- 6.1% YoY (February)
- CPI (April 2025)
- 3.2%
- Edible Oils Price Increase
- 17.4%
Sources
RBI Likely To Ease Interest Rates, Revises Inflation Target For FY26 To 3.7%; Average Inflation For April & May,Inches Closer To This Estimate
Why your equity, debt and gold bets depend on the RBI more than ever
Centre may restrict fiscal deficit to 4.2%-4.3% of GDP, better than FY26 target
