New Delhi, Dec 23 (IANS) India’s savings rate has surpassed the global average as financial inclusion in the country has soared and over 80 percent of adults now have a formal financial account, according to an SBI report released on Monday .New Delhi, India’s savings rate has surpassed the global average as financial inclusion in the country has soared and more than 80 percent of adults now have a formal financial account, according to an SBI report released Monday.
India’s savings rate stands at 30.2 percent, which is higher than the global average of 28.2 percent, the report said.
“Through several measures, India’s financial inclusion has improved significantly and now more than 80 percent of adults in India have a formal financial account, up from about 50 percent in 2011, improving the financialization of Indian households’ savings rates. “, the report shows.
The share of net financial savings in total household savings has increased from 36 percent in FY14 to around 52 percent in FY21, but this share has declined in FY22 and FY23.
The trends for FY24 show that the share of physical savings is starting to decline again.
Among financial savings, the share of bank deposits/currency is declining as new investment options such as mutual funds etc. emerge, said the research report of the Economic Research Department of the State Bank of India.
Over the past decade, funds mobilized by Indian companies in the capital markets have increased more than tenfold, from Rs 12,068 crore in FY14 to Rs 1.21 lakh crore in FY25 (till October).
Household savings in ‘stocks and bonds’ increased from 0.2 percent in FY14 to around 1 percent of GDP in FY24, and the share of household financial savings increased from 1 percent to 5 percent.
This shows that households are now increasingly contributing to the country’s capital needs, the report said.
In FY25 (till October), a total of Rs 1.21 lakh crore of capital was raised from the equity markets through 302 issues. The regional data shows that the western region’s share is higher in both number and value, and the central region’s share is below 3 percent.
-IANS
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