According to the apex bank, net household financial savings climbed to 7 percent of the Gross National Disposable Income (GNDI) in FY25, up from 5.8 percent recorded in the previous fiscal year. This upward trajectory was primarily driven by a sharp contraction in household borrowing. Financial liabilities plummeted to 4.8 percent of GNDI from a high of 6.4 percent a year earlier. This substantial reduction in debt more than adequately compensated for a slight moderation in gross financial savings, which dipped marginally from 12.1 percent to 11.8 percent. On a macro level, India’s overall gross domestic savings also showed robust growth, climbing to 34.2 percent of GNDI from 32.3 percent in FY24.
In terms of investment preferences, the RBI highlighted that traditional bank deposits continue to dominate Indian household savings. These are closely followed by safety-net instruments like provident funds, pension funds, and insurance. However, the report also flagged an evolving trend among retail investors, noting a gradual but steady increase in household allocations toward shares and debentures, signaling a growing appetite for capital market instruments.
