Gap Between Families And Savings; Burden Of Borrowings!

Savings have been a part and parcel of Indian culture. The habit of saving for tomorrow runs through the veins of Indians. The same reason helped India stand tall in 2008 when the whole world was shaken by the financial crisis.

The financial experts showered massive praises on the savings culture of Indians back then. This happened one and a half decades back. But the current picture is that even the economists are shocked.

Looking at the current picture, a harsh truth has come out which says that there is a big gap between Indian families and savings. The report was issued by the State Bank Of India which says that the savings of Indian families came down by 55 percent in the financial year of 2022-23.

Experts say that the massive drop in savings is a big issue for the Indian economy. At the same time, the borrowings went up to Rs 15.6 lakh crores. The SBI report says that the borrowings went up by 8.2 lakh crores in just two years. 7.1 lakh crores among the debts account for the bank loans alone.

Financial experts are expressing concerns that the big jump in the debts will impact the Indian economy. However, Union Finance Minister Nirmala Sitharaman is rubbishing these observations.

She is saying that there is no question of a financial crisis in the country. The Finance Minister said that people not making savings in the banks say that they are investing in other ways and in this way, the economy is very safe. No matter what, savings are in our blood, and spending without any limit is a Western trend.

However, the Western idea of living in the moment and spending money is slowly seeing a rise in our country as well, say many. If this appears to be true and Indians leave the trend of savings then the families have to suffer. Veteran financial experts say that this will impact the Indian economy as well.