Net household financial savings in India increased to 7 per cent of gross national disposable income (GNDI) in 2024-25 from 5.8 per cent a year earlier, according to the Reserve Bank of India's annual report. The RBI attributed this improvement to a sharp decline in household financial liabilities, which more than offset the moderation in gross financial savings. Gross domestic savings rose to 34.2 per cent of GNDI in 2024-25 from 32.3 per cent in 2023-24, demonstrating the overall strengthening of India's savings position.
Gross household financial savings moderated to 11.8 per cent of GNDI in 2024-25 from 12.1 per cent in 2023-24, as reported by the RBI. Simultaneously, household financial liabilities fell sharply to 4.8 per cent of GNDI in 2024-25 from 6.4 per cent in the previous year. The decline in liabilities was the primary driver behind the overall improvement in net household financial savings, highlighting the positive impact of debt reduction on household financial health.
According to the RBI report, household financial savings are dominated by deposits, followed by provident and pension funds and insurance, with a gradual increase in investment in shares and debentures. This diversified investment approach reflects the evolving financial preferences of Indian households, moving beyond traditional savings instruments toward more sophisticated financial products. The shift toward equity and debt instruments indicates growing sophistication in household financial planning and investment strategies.
