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Household saving plummet to 50-year low amidst borrowing surge

RBI
Team Blitz India

NEW DELHI: Household savings in India have plummeted to their lowest levels in nearly five decades, while financial liabilities have surged at the second-fastest rate since Independence. The Reserve Bank of India (RBI) data showed that net financial savings of households dropped to just 5.1 per cent of GDP in FY23, down from 7.2 per cent in FY22, indicating a significant income squeeze and suggesting that the post-pandemic consumption surge may be short-lived.

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