Household savings in India drop to 18.1% of GDP in FY24: CareEdge Ratings
ANI Representational image
India's household savings continued their downward trajectory for the third straight year, slipping to 18.1 per cent of GDP in financial year 2024 (FY24), as per CareEdge Ratings. The report added that Gross domestic savings declined to 30.7 per cent of GDP in FY24 from 32.2 per cent in FY15.
On the other hand, household financial liabilities surged to 6.2 per cent of GDP, nearly doubling over the past decade, reflecting growing reliance on credit amid consumption needs, the report observed.It highlights that despite the concerning savings trend, rural India offers a silver lining. Wage growth for rural male workers rose by 6.1 per cent year-on-year in February, outpacing rural inflation for the fourth consecutive month. This, along with easing food inflation and favourable agricultural prospects, is supporting rural demand recovery, the report added.
Rural consumer confidence, hovering around the neutral 100 mark, reflects a cautious optimism. In contrast, urban consumer confidence remains in pessimistic territory, though expectations for the year ahead remain upbeat across both segments, the report added.
In the broader economy, labour cost growth for major IT firms has slowed significantly from a peak of 26 per cent in Q3 FY23 to just 4 per cent in Q3 FY25, highlighting a broader trend of cost rationalisation in the corporate sector, as per the observations of the report.On the inflation front, CPI eased to 3.2 per cent in April 2025, the lowest since August 2019. However, high prices of edible oils (17.4 per cent) and fruits (13.8 per cent) continue to keep overall food inflation in check. The upcoming Rabi harvest, healthy reservoir levels, and forecast of above-normal monsoon rains are expected to further support food price stability, the report added."Going ahead, RBI policy rate cuts, lower tax burden and continued easing of price pressures remain key tailwinds for the broad-based demand recovery," the report saidAs per the government data, the Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
an hour ago
- New Indian Express
'Starlink isn't going to bring millions and millions of customers into the fold'
The Indian telecom sector is 'evolving' despite several challenges it is facing. It is in the middle of a transition from 4G to 5G, satellite communication is becoming a reality, and competition is getting more broad-based. Rakesh Kumar caught up with Minister of State for Communications Pemmasani Chandrasekhar to get an overall view of the sector. An excerpt: BSNL has been profitable for the last two consecutive quarters. How did you make that possible? There is a lot of work going on inside BSNL. We have installed close to 100,000 4G towers in the last 12 months, and around 70,000 of them are active now. All these towers are performing better. So, obviously, we are increasing the customer base. There is a component of that. There is also a component of spending control, and overall efficiency is being improved at BSNL. All these factors have culminated in profitability, but the profit is around Rs 250 crores. That's not our target; it's actually just a tipping point. If the 4G rollout goes according to our plan, ideally, we should be generating a lot more revenue and expanding our customer base. When are you going to stop BSNL subscriber churn? We are gaining subscribers every month. One major limitation is that BSNL only has 100,000 4G towers. If you look at Reliance and Airtel, they have over 500,000–600,000 towers. After completing installation of 100,000 4G towers, we are going to request approval from the Cabinet for another 100,000 towers. We are focusing on increasing cash flow. Once we boost the cash flow, we will inherently have the opportunity to install more 4G and 5G equipment. We are also monetizing BSNL's assets, which will provide additional funding. The government has already given licenses to Starlink and two other satellite players. When will the services start? Granting licenses is our responsibility. The rest is up to Starlink and when they decide to start. I am pretty sure they want to begin as quickly as possible, especially since their basic infrastructure has already been set up. However, it is important to remember that Starlink isn't going to bring millions and millions of customers into the fold. It will play a minor role compared to the rest of the telecom infrastructure. That's because it is expensive, and there will be speed issues. Satellite communication is important as a backup and for some rural areas, where entrepreneurs and others who need a stable and decent connection could benefit. In those areas—like maritime zones and other remote regions—satellite could be very helpful, but it's more of a complementary solution in the overall telecom ecosystem. There were complaints from telcos that satellite services will eat into their business in India. It won't be like that. It will be a bit more expensive compared to terrestrial networks. The speed of satellite internet is much slower than that of terrestrial networks. Besides, satellite internet is not intended for mobile services; it's only for internet service, at least for now. Satellite communication will function more as a backup rather than a primary service. So last year, all the telcos increased their tariffs. Are we expecting more increases this year? If you look at the overall cost, we are much, much cheaper compared to the rest of the world. Obviously, the companies have invested heavily in 5G, and now all these companies are publicly listed, so they have their own concerns regarding growth. But at the same time, if there is effective competition—whether it's Vodafone Idea or BSNL—pricing will naturally come back to a more normal level. The key here is to ensure at least three or four highly effective players remain in the market. There are questions about the quality of services provided by telcos in the country. We are taking a closer look at the quality of service in the country now. We used to monitor and report on a quarterly basis, but now we've changed it to monthly reports. Previously, we monitored at the cell tower (BTS) level. Now, each BTS has 12 cells, so we are monitoring at the cellular level. The intensity and depth of this quality of service monitoring have been revamped.
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
Rare earth magnet crisis may be too good to waste for India's EV ambitions
China's near monopoly on rare earths has rattled Indian automakers, triggering a diplomatic push and renewed urgency for local processing capacity Shine Jacob Archis Mohan Listen to This Article When Beijing announced in April that it would tighten its grip on exports of rare earth-related items, the reverberations were swift — and worldwide. The move, enforced by China's Ministry of Commerce and the General Administration of Customs, has sent tremors through global automobile industry, including India's electric vehicle (EV) sector. At the G7 Summit that opened on Sunday in Canada, rare earth supplies are high on the agenda. Canadian Prime Minister Mark Carney, laying out the priorities for his country's G7 presidency, spoke of 'fortifying critical mineral supply chains' as one of three core missions to shore up economic
Time of India
an hour ago
- Time of India
ET Women's Forum: Empowerment transforms lives, says Deepthi Reddy N
The empowerment of women is central to the work done by Reliance Foundation , said Deepthi Reddy N , who heads the women's empowerment initiative at the foundation. "Women's empowerment, the nuclei to transformative change, has the potential to redefine India's development trajectory for 2047," Reddy said at the The Economic Times Women's Forum. Reliance Foundation is the philanthropic arm of Reliance Industries, headed by Nita Ambani, wife of chairman Mukesh Ambani. Health, education, disaster management, arts, culture and heritage, rural transformation and sports for development are some of the other causes for which the foundation is working. "At Reliance Foundation, our approach to women's empowerment is catalytic, driving systemic changes at an individual, household and community ecosystem," Reddy said. This is driven through digital and financial inclusion, economic empowerment, economic resilience and agency and leadership, she said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Costco Shoppers Say This Wrinkle Cream Is "Actually Worth It" The Skincare Magazine Undo Reddy also spoke about some of the programmes of the foundation. One of the programmes, for instance, which runs across Madhya Pradesh, Odisha and Gujarat, covers about a million women to economically empower them. "These efforts are augmented through dedicated programme interventions, unique and distinct as models of partnership and collaboration," she said. The foundation is also working on innovative solutions which can help bridge the gender digital divide, Reddy said. This is being done with a view to ensuring that women have equitable access to digital tools and resources. "At Reliance Foundation, we strive to balance equity and equality with equanimity," she said. Live Events As a part of its ' Women Empowerment ' programme, the foundation is working to ensure women's effective participation in society, while grooming them for leadership roles, which can help bridge the technology gender digital divide. The foundation's initiative 'Women Leaders India Fellowship', which has completed its second cohort, is a fellowship programme which aims at strengthening the leadership capacity of 50 inspirational Indian women leaders addressing urgent economic and social issues across the key areas of rural transformation, education, sports for development, and arts, culture and heritage.
