How India Earns, Spends and Saves


India’s economy is growing at fast pace, so are the earnings of Indians. A single visit to a Mall or superstore will give you a glimpse of amount of money Indians have in their pockets.

But are Indian’s just spending or are they saving something?

Indian savings earnings

I came across and interesting survey jointly conducted by Max New York Life and National Council of Applied Economic Research (NCAER) – ‘How India Earns, Spends and Saves’ – that throws some light on what Indians are doing with their money.

Here are some of the highlights of the survey

  • 81% of Indians save; the average household savings are Rs. 16,139.
  • The top income-quintile saves 44% of income
  • Graduate households save 30% of income; non-graduate families an average of 18%
  • Salaried earners save around 7% of income; labourer households save about 4%
  • Less than 25 per cent of households have life insurance. 78 per cent of the households are aware of life insurance, only 24 per cent households own a life insurance policy
  • Indian households keep 65 per cent of their savings in liquid assets like bank or post office deposits and cash at home, invest 23 per cent in physical investments like real estate and gold and only 12 per cent in financial instruments. Life insurance is among the most popular financial instruments.
  • 36% of savings are kept as cash at home, 50% in banks, 5% in post office accounts and 3% in cooperative societies.
  • 58% labourers and 20% salary earners said that their first choice for depositing savings would be to keep it at home.
  • 96 per cent of the households cannot survive beyond a year on their current savings.

The Survey covered 342 towns and almost 2,000 villages across 250 districts and 2,255 wards. The sample size included 63,016 households, equally divided between rural and urban areas.

  1. Raseel says

    I was kidding , of course. And as you rightly pointed out , in behalf of my generation, I beg to differ. My generation , I feel, not only saves, but also invests intelligently all the while making sure they enjoy other small luxuries of life. But debatable as it may be, the fact can never be hammered down enough , that saving should start early and consistently.

  2. Arun says

    Vasanthi…[email protected] = boon for robbers :)

    Thats the case with most of the youngsters, probably the biggest difference between the current and older generation (tends to cause lot of arguments…you must have experienced it for sure..)

  3. Raseel says

    Saving ? Hmm… I seem to recollect hearing that word somewhere. Maybe if I concentrate hard enough it’ll come to me ;-)

  4. vasanthi reddy says

    Its well known theory in olden days that they keep their money at home…but not anymore……Dont publish nationally then the robbers will be targeting …lol..

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