Indian Economic Growth – The Untold Story

Kindly observe that , of the household Finance Savings (FS) bank savings constitute nearly 60% , PF and Insurance constitutes 33%, Investments in share market is less than 5%. 

 

Table 5.1 :Composition of House Hold Savings 2004 to 2012[%]

Item 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
GDS to GDP at factor cost 35 36 38 40 34 36 36 33
House hold Savings [HS] to GDS 73 70 67 61 74 75 69 72
Physical Savings [PS] to HS 57 50 51 48 55 53 56 64
Financial Savings [FS] to HS 43 50 49 52 45 48 44 36
Currency to FS 8 9 9 11 14 10 13 11
Net Deposits to FS 37 46 56 52 58 44 52 59
Shares and Bonds to FS 2 6 7 10 -1 5 0.5 -0.3
Net Claims on Govt. to FS 24 14 3 -4 -4 4 3 -3
Life Insurance to FS 16 15 16 22 23 24 19 19
PF and Pensions to FS 12 10 10 9 9 13 13 14
Total FS 100 100 100 100 100 100 100 100

 

Note: GDS= Gross Domestic Savings; GDP= Gross Domestic Product; Net Deposits= Deposits with banks;

Net Claims on Govt.= Small Savings and Post Office

From currency onwards the percentages are to Gross Financial Savings

Source: St. 73, 10 & 18, National Accounts Statistics 2013; CSO New Delhi

 

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