New Delhi: The financial savings of households rebounded to 5.1% of Gross National Disposable Income (GNDI) in FY24, as per the annual report (2024-2025) of the Reserve Bank of India. The saving percentage rose after witnessing a multiyear low in the previous fiscal year. The rebound comes in a favorable economic environment and amid a softening inflation. Overall, the report shows confidence that the inflation will come in the range of 4%, the RBI-mandated target set for the fiscal year. “The benign inflation outlook and moderate growth warrant monetary policy to be growth-supportive while remaining watchful about the rapidly evolving global macroeconomic conditions,” it said.
As a share of GNDI, gross domestic savings is steady at 30.3 percent of it in 2023-24, mostly because of the decline in the general expenditure of government. Simultaneously, household financial savings rose to 11.2 percent of GNDI, marginally increasing from 10.7 percent from last fiscal year. On the other hand, household financial liabilities increased to 6.1 percent, resulting in net household financial savings improving to 5.1 percent from 4.9 percent. The report further said that the savings-investment gap narrowed during 2023-24, suggesting the reasons behind it, such as the household’s low appetite for investment.
RBI Annual Report
The keenly watched report said the Indian economy is poised to remain the fastest-growing major economy in 2025-26 by leveraging its sound macroeconomic fundamentals, robust financial sector, and commitment towards sustainable growth.
The economy exhibited resilience during 2024-25, supported by strong macroeconomic fundamentals and proactive policy measures, amid protracted geopolitical tensions and geoeconomic fragmentation, said the RBI’s Annual Report for the Year 2024-25.
“The strength of the financial sector, reflected in improved asset quality and well-capitalised banks, further supported economic activity. Amidst multiple global headwinds, the Indian financial markets demonstrated resilience and orderly movements,” it said.
The Reserve Bank of India’s annual report reveals a significant rebound in household financial savings, reaching 5.1% of Gross National Disposable Income (GNDI) in FY24. This increase follows a multi-year low and reflects a positive economic environment with moderating inflation. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
