Parliament Question: Declining household savings

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS RAJYA SABHA UNSTARRED QUESTION NO.3584 TO BE ANSWERED ON Tuesday, March 24, 2026/ 3 Chaitra, 1948 (Saka) Declining household savings 3584 Shri A. A. Rahim: Will the Minister of FINANCE be pleased to state: (a) the details of the gross household financial savings in the country and its share in GDP during each of the last five financial years, year-wise; (b) the details of household financial liabilities, including borrowings from banks, Non Banking Financial Companies, both in absolute terms and as a percentage of GDP year wise; (c) whether any study has been conducted on the reasons behind the increase in household liabilities and the decline in savings, if so, the details and findings thereof; (d) if not, whether Government proposes to undertake such a study; and (e) the steps taken to address declining household savings and rising liabilities? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) and (b) The year-wise details of gross financial savings and financial liabilities, including borrowings from banks and Non-Banking Financial Companies, of the household sector for the last three years for which data under the new series is available, are given below. 2022-23 2023-24 2024-25 Rs lakh crore Gross financial savings of households 29.8 35.8 38.3 Financial liabilities of households 16.0 18.8 15.7 As a per cent of GDP Gross financial savings of households 11.4 12.3 12.0 Financial liabilities of households 6.1 6.5 4.9 Source: Ministry of Statistics and Programme Implementation (New series of GDP estimates (Base Year 2022-23))(c) and (d) According to the new series of GDP estimates (Base Year 2022-23) released by the Ministry of Statistics and Programme Implementation, household savings (inclusive of physical savings) increased from ₹52.25 lakh crore in 2022-23 to ₹69.01 lakh crore in 2024- 25. At the same time, household liabilities have declined from ₹15.96 lakh crore in 2022-23 to ₹15.71 lakh crore in 2024-25. As per the Reserve Bank of India’s Financial Stability Report published in December 2025, India’s household debt remained lower relative to most peer emerging market economies. Additionally, from a risk perspective, the share of better-rated customers, viz., prime and above, has increased both in terms of the outstanding amount and number of borrowers, indicating that the overall resilience of the household sector remains sound. As per RBI data, household net financial savings (after adjusting for liabilities) increased to 6 per cent of GDP in 2024-25, up from 5.2 per cent in 2023-24. (e) Over recent years, the Government has undertaken a range of policy measures aimed at improving the ease of doing business, expanding skilling initiatives, generating employment opportunities, promoting inclusive human resource development, and strengthening infrastructure. These measures are expected to support sustained growth in household incomes and savings, thereby contributing to overall financial stability of households. Further, recent policy initiatives, including income tax relief for individuals and GST rate rationalisation, are expected to enhance disposable incomes, thereby supporting higher household savings and reducing reliance on borrowings. *****