Indian households are saving lower than they’ve for half a century. According to the Reserve Bank of India, web family financial savings in 2022-23 — the Indian monetary yr runs from April to March — had been solely 5.1% of gross home product. That’s down from 8% of GDP in 2019-20 and 11.5% within the yr the pandemic hit.

These are ranges not seen for the reason that oil crises of the Seventies. The debt burden of Indians can be growing. Household monetary liabilities rose sharply to five.8% of GDP within the final monetary yr. The ratio had stood at 3.8% the earlier yr.