Mumbai: India has become the fourth-largest saver globally. A recent report by the State Bank of India (SBI) showed this.
As per report, India’s country’s savings rate stands at 30.2%. It has surpassed the global average of 28.2%. This positions India as the fourth-largest saver globally, trailing only China (46.6%), Indonesia (38.1%), and Russia (31.7%). In India, over 80% of adults now using formal financial accounts. It was at 50% in 2011.
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Systematic Investment Plan (SIP) registrations seeing a fourfold increase since FY 2018, reaching a total of 4.8 crore SIP accounts. Moreover, investments in stocks and debentures have also surged. Ten years ago, the contribution of shares and debentures to the GDP was a mere 0.2%, but by FY 2024, this figure rose to 1%.
Net financial savings – representing the portion of domestic savings invested in financial assets – has seen a steady increase. From 36% of total savings in FY 2014, this share grew to 52% by FY 2021, though it experienced a slight dip in FY 2022 and FY 2023.
SBI’s report suggested that a 1% rise in market cap could contribute to a 0.6% increase in GDP growth. Over the past decade, the amount raised by companies through the capital markets has surged dramatically. In FY 2014, firms raised Rs 12,068 crore, a figure that ballooned to Rs 1.21 lakh crore by October 2024.
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