Saving and Investment Pattern in India
Domestic savings mainly fund domestic investment in India. Foreign capital inflows account for less than 1% of GDP (. India was a primary beneficiary of foreign aid, but the total amount of aid was not yet necessary compared to the size of the economy. Reflecting the Indian governments hesitation in inviting foreign investment uncritically and the highly restricted capital accounting system, foreign direct investment and other forms of private capital, portfolio investment, and banking flows, The role was even less important. The relationship between savings and investment has not changed significantly since the reform in 1991. The temporary pattern of domestic investment rates effectively reflected the savings rate during the period. The relative share of the public and private sectors in the GDP mix changed significantly from the early 1950s to the early 1980s.
which increased from about 30% to 50%, accounted for most of the total increase in investment. However, the rise in investment rates since the mid-1980s may be primarily due to increased private investment. Private investment since the 1990s has been a primarily private investment.
Corporate investment accounted for more than 45% of total private investment in the 1990s. In terms of GDP, private sector investment increased by 4.3% in the late 1980s. Up to 7.1 percent in the mid-1990s. (On the other hand, domestic investment fell from 9.3% of GDP to 8.5%.) Investors recognize that the cost of capital will fall due to import liberalization.
On September 15, 2018, the Reserve Bank of India (RBI) published its latest annual statistical publication, The Handbook of Statistics on the Indian Economy-2018. Through this publication, the bank offers time-series data storage on various economic and financial indicators of the Indian economy.
You can find a lot of valuable data related to:
● Macroeconomic indicators
● Money and banks
● Financial markets
● Trade and balance of payments
Socio-economic indicators, etc. Based on this statistic, we will compare and publish some critical/interesting points and trends related to personal finance (since 2014). For example, household savings habits, total investment in bank deposits, etc., Investing in stocks and investment trusts, information on total bank loans, stock market performance, inflation data,
NRI deposits and more.
Before talking about statistics, let us look at family savings, monetary wealth, and real estate. Household savings correspond to the total income saved by the household over some time. Savings and investments in banks, stock exchanges, postal systems, company deposits, etc., are considered financial assets / financial savings. Investing in real estate, gold, silver, etc., is a physical savings/asset. Indian Household Savings, Investment and Responsibility Patterns 2018
Financial and Physical Assets:
What are our preferred assets?
From 1990 to 2000, Indian households preferred to invest in financial assets rather than tangible assets.
● From 2000 to 2007, more savings were spent on physical assets. Interestingly, investment in financial assets increased in 2007/08. This indicates that retailers / small investors entered the stock market when they received the highest ratings. The market finally collapsed in 2008.
● From 2008 to 2015, we prioritized physical savings over economic savings.
● Total financial savings in 2014-15, 2015-16, and 2016-17 were Rs 12.572 billion, Rs 1.5207 billion, and Rs 14.48 billion. Based on 2017-18 data, approximately Rs. 18.8 billion was invested in financial assets.
● Physical asset savings in 2013-14, 2014-15 and 2015-16 were Rs 14,164, Rs 15,000 and Rs 12,700, respectively. Data for 2016-17 was around Rs. 13.9 billion was invested in physical assets.
● Earlier data in recent years clearly show that physical asset savings have recovered slightly and financial asset savings have increased significantly (2017 and 2018).
Based on the above data, we can see that from 2017 to 2018, bank deposit savings fell sharply, and equity investment increased significantly. We can also conclude that pension funds and reserve funds are in constant influx.
Financial Responsibility of Indian Households (2018):
● From 2017 to 2018, approximately Rs 6,739 million was received as loans from banks and financial institutions. This figure was around Rs 3,700 in the 2016-17 fiscal year. Therefore, the financial burden on Indian households has almost doubled.
Bank Time Deposit Data-The following is the idea of the total amount of unpaid amounts saved by bank time deposits and deposit holdings (as of March 2018).
● Bank loans in 2015-16, 2016-17, and 2017-18 were 2,747 million, 2.509, and 4.3 trillion, respectively. A one- to two-year forward deposit was most preferred, followed by a five-year term deposit (which could be a tax-saving FD).
FD / RD / Avoid long-term investments in conventional life insurance
NRI deposit :
● 2015-16 data: Total due NRI deposits totaled Rs 8.419 trillion, of which NU, FCNR, and NGO deposits were approximately Rs. 4.74 trillion, Rs 3.5 trillion, and Rs 672 billion, respectively. (NGO-Non-resident (external) Rupee account, FCNR-Foreign currency denominated non-resident and NGO-Non-resident regular Rupee account)
● 2016-17 figures: Total unpaid NRI deposits totaled Rs 7,757 million, of which NRE, FCNR, and NGO deposits were approximately Rs 5,395 million, Rs 1,361 million, and Rs 820 billion, respectively.
● 2017-18 figures: total unpaid NRI deposits totaled Rs 8,207 billion, of which NRE, FCNR, and NGO deposits were approximately Rs 5,856 billion, Rs 1.432 trillion, and Rs 918 billion, respectively. .. (Bank deposit interest rate patterns (2012-2018))
You may find that interest rates on deposits and loans are declining from 2014-15 to 2017-18. In the current fiscal year 2018-19, we see an increase in the deposit rate and MCLR (loans).
Post Office Small Savings Plan (SSS) Deposit
● In 2017, Indian households time deposits and time deposit savings also increased slightly.
● Since 2011-15, investment in other typical schemes such as NSCs, KVP certificates, and credit schemes has declined.
Senior Savings or Monthly Income Scheme (MIS); However, this trend reversed between 2015 and 2017. (Read: "Latest Interest Rates on Post Office Small Savings Plans 2017-2018")
● Debt fund long-term savings are steadily increasing.
Import of gold and silver
● The Fiscal Year 2014-15 imported Rs 2.106 billion and $ 276 billion of gold and silver, and Fiscal Year 2015-16 imported Rs 207.4 billion and Rs 244 billion, to approximately Rs 1.843 trillion. Rs 123 billion was introduced in the 2016-17 fiscal year.
● The 2017-18 figures were that 2.1 billion gold and 207 billion silver were imported. Therefore, there was a reversal in the trend of gold and silver imports in India last year.
● The average annual price of gold (10 grams) in 2016-17 was 29,655 rupees, and that of silver (1 kg) was 42,748 rupees.
● In 2017-8, the average annual price of gold (10 grams) was 29,300 rupees, and silver (1 kg) was 39,072 rupees. (Investment Trust Scheme: Assets Under Management Until 2018)
Between 2017-18, the AUM of Indian investment trusts increased by 22%.
Other important notes
● Stock Market Index: The BSE Sensex annual average stock index for the 2016-17 fiscal year was 27,338, and Nifty was 8,638. The BSE Sensex Stock Index averaged 32,396 for the 2017-18 fiscal year, and Nifty was 10,424.
● Inflation: The CPI (Consumer Price Index), commonly known as inflation, gradually declined from 10 in 2012-13 to 3.6 in 2017-18.
● CRR and repurchase rates: In the last quarter of 2018, the RBI raised vital policy rates such as repurchase rates and reverse repurchase rates. The reserve requirement ratio did not change. Since August 1, 2018, the latest rates are CRR 4%, SLR 19.50%, repurchase rate 6.50%, and reverse repurchase rate 6.25%.
"What is CRR / SLR / Report?"
● LIC Investment: LIC invested in approximately 2016.525 billion in shares in 2016-17 (up approximately 14%). Between 2017-18, LIC invested about 24,154 million.
● Mortgages: HDFC paid $ 1.712 billion worth of mortgages in 2016-17. HDFCs mortgage balance is approximately Rs 3,594 million. • Electronic payment systems: During the 2016-17 fiscal year, the amount paid through "prepaid equipment and retail electronic cleaning systems" increased.
● NBFC Deposits: The total amount of unpaid public deposits at NBFC will reach Rs 306 billion and Rs 319 billion in 2016-17 and 2017-18, respectively. Related article: "How can I check that a company can collect public funds?"-Company FD scheme")
● Taxes: In 2017-18, the central government collected a direct tax of approximately Rs 6,245 million. Of this, personal income tax was 267 billion rupees, and corporate tax was 3,574 million rupees. Six thousand four hundred forty-eight million indirect taxes have been levied. My opinion
We (Indians) maintain a relatively high net savings rate (the national savings rate is about 20 percent of GDP). However, the net savings rate as a percentage of GDP declined from 2011 to 2012.
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