30-year decline in savings of indian families..!?

Just as the price of a commodity is determined by the difference between supply and demand, similarly the level of savings of a household is determined by the rise in income and prices. At this point, the savings of indian households has reached a 30-year low. All have solved this price burden by raising the price of goods. As a result, people are automatically forced to buy at a higher price. The major impact for the companies is that the volume of trade is reduced, for example, if 10 lakh toothpaste is sold in a month, now only 7-8 lakh toothpaste are being sold. As a result, overall consumption levels in all sectors have been affected to a large extent. Meanwhile, the income of most people has not seen a large increase in the last 3 years, and the average increase in income of 10-12 percent has been wiped out by the rise in prices. As a result, the savings levels of indian households have reached a 30-year low, indicating a K-shaped economic recovery for the indian economy. At the same time, RBI is expected to raise the interest rate in the next monetary policy meeting as the inflation in the country remains low.In a report published by Nuvama Institutional Equities, the post-corona economic growth has been good, but the aggregate has been poor. India's retail inflation stood at 6.5 percent in January. It is 5.72 percent in december and 5.88 percent in November. Not only this, in the first half of the financial year 2023 the average level of inflation in the country is 7.2 percent, which is 5.8 percent two years ago i.e. before Corona. This alone shows how much the condition of the people has been affected and how much the economy of the country has risen. And total savings of indian households fell by 15 percent of GDP in the first half of the current fiscal year, a 30-year decline. The savings of indian households is the difference between a household's disposable income and its consumption of goods and services. Household savings are important because an economy with a low household savings rate may not be able to finance its investment needs domestically.

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