Savings in India - A Critical Analysis

The population in India is growing at an average rate of 2.07 percent per year after independence. To feed its population India has to grow economically both in agriculture and in industrial output. Recent reports show that the Indian economy is growing at the rate of 9 percent and it may touch double digit mark very shortly. To maintain and grow further economically and socially, India requires huge investment in all sectors. India can generate funds from domestic and external sources to meet its investment requirements. The household sector accounts for more than 80 percent of total savings and the contribution from public and private sector is very less and this is different from trend prevailing in other countries. This article attempts to analyse the features and trend of Savings in India. This will provide much needed input to the economic planners and capital market intermediaries to take right decision.