Mumbai, February 19: India's savings rate has touched a 15-year-low and household savings are also on the decline. According to an Economic Times report, the household savings have declined as consumers spent more on purchasing durables and also in travelling. Indian household contributes to 60 percent of the country's savings. In spite of this, India continues to remain favourable as compared to emerging markets like Brazil.

The data from the Central Statistical Organisation revealed that India's gross savings fell to 30.1 per cent of the gross domestic product in fiscal 2019 (FY2018-19) as compared to 34.6 per cent in fiscal 2012. The rate had touched a low of 29 percent in 2003-2004. Economic Crisis Now Hits Rural India, Consumers' Purchasing Power Hits 7-Year Low: Nielsen Report.

Economists have said that the current slowdown in the country has also contributed to the falling savings rate. The economy is in doldrums and the sectors have been recently affected with the Coronavirus outbreak. The World Bank data shows that India is better than Brazil which has a savings rate of 16 per cent of GDP and Mexico at 23 per cent. However,  China is far ahead at 46 per cent.

(The above story first appeared on LatestLY on Feb 19, 2020 12:34 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).