The problem of savings

The Central Statistics Office’s (CSO) detailed estimates of national income for 2012-13 reveal the extent of deterioration that has taken place in domestic savings, both quantitatively and qualitatively. Since 2007-08, India’s gross savings rate has dropped from 36.8 to just 30.1 per cent of its GDP. The current fiscal could well see this go below 30 per cent, the first time after 2003-04. The decline in the overall savings rate is, however, only one part.

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