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Informist, Thursday, Mar. 5, 2026

NEW DELHI – India's savings rate jumped to a record high in 2024-25 (Apr-Mar) on the back of a rise in households' financial savings while their financial liabilities fell. The new GDP series, with FY23 as base year, also showed that the savings rate in FY24 was higher than previously estimated.

 

India's gross savings rose to 34.9% of GDP in FY25 from 32.8% in the previous year, according to government data. At 34.9% of GDP, gross savings were the highest since at least FY12, based on data from the old GDP series. In absolute terms, gross savings were at INR 111.13 trillion in FY25, 17% higher than a year ago. Gross savings were at 29.8% of GDP in FY23.

 

The gross savings rate of 32.8% for FY24 was higher than the 30.7% as per the old GDP series. Gross savings as a share of GDP in FY24 rose in the new series, thanks to higher absolute savings at INR 95.17 trillion, against INR 92.59 trillion, and a fall in the size of nominal GDP.

 

The size of India's GDP at current prices in FY24 was INR 289.84 trillion, as per the new series, lower than INR 301.23 trillion previously estimated in the old series. According to data from the new series, nominal GDP in absolute terms was also lower in FY25 and FY23 as compared to the estimates based on the old series.

 

The latest data on savings was released as part of the revised GDP estimates for FY25 and FY24 on Friday, along with the new GDP series. The government has released savings estimates till only FY23 so far, as part of the new GDP series, and the data are not comparable with the old GDP series. 

 

India's GDP is projected to grow 7.6% in FY26, according to the government's second advance estimate, higher than 7.1% in FY25. 

 

HOUSEHOLD SAVINGS

The rise in India's gross savings was led by the household sector, where net financial savings rose to 7.1% of GDP in FY25 from 5.9% in the previous year. For FY24, net financial savings rose from the 5.2% of GDP estimated in the old GDP series. 

 

Gross financial savings of households rose 7% on year to INR 38.28 trillion in FY25 but fell as a share of GDP to 12.0% from 12.3% in FY24. 

 

Financial liabilities fell 16% on year to INR 15.71 trillion in FY25, likely as households trimmed debt on higher borrowing costs. Households' financial liabilities eased to 4.9% of GDP last financial year from 6.5% of GDP in FY24, Informist's calculations of government data showed. 

 

Households' savings in physical assets was 13.9% of GDP in FY25, lower than 14.1% in FY24.  End

 

Reported by Shubham Rana

Edited by Tanima Banerjee

 

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