
According to the latest National Account Statistics 2024 of the Ministry of Statistics and Programme Implementation, net household savings in India declined sharply by Rs 9 lakh crore to Rs 14.16 lakh crore in the three years leading up to 2022-23. This is a significant decrease from the peak of Rs 23.29 lakh crore in 2020-21.
The decline in net household savings continued, reaching a five-year low of Rs 14.16 lakh crore in 2022-23. The previous low was recorded at Rs 13.05 lakh crore in 2017-18, which increased to Rs 14.92 lakh crore in 2018-19 and Rs 15.49 lakh crore in 2019-20.
In terms of investment, the data shows that investment in mutual funds almost tripled to Rs 1.79 lakh crore in 2022-23 from Rs 64,084 crore in 2020-21. It was Rs 1.6 lakh crore in 2021-22.
Household investment in shares and debentures also nearly doubled to Rs 2.06 lakh crore in 2022-23 from Rs 1.07 lakh crore in the three years leading up to 2020-21. In 2021-22, it was Rs 2.14 lakh crore.
Bank advances (loans) to households have doubled in three years, reaching Rs 11.88 lakh crore in 2022-23 from Rs 6.05 lakh crore in 2020-21. In 2021-22, it was Rs 7.69 lakh crore.
Loans to households by financial corporations and non-banking financial corporations have also increased fourfold to Rs 3.33 lakh crore in 2022-23 from Rs 93,723 crore in 2020-21. In 2021-22, it was Rs 1.92 lakh crore.
It is worth noting that while net household savings have declined, there has been an increase in investment in mutual funds, shares, debentures, and bank advances to households.