Household savings in India have fallen to a decades-low level: RBI data
New Delhi: Household savings in India have fallen to a decades-low level while borrowing has increased, according to data from the Reserve Bank of India (RBI). In the fiscal year 2023 (FY23), net financial savings of households reached 5.1% of the gross domestic product (GDP), down from 7.2% in FY22.
The annual financial liabilities of households rose by 5.8% of GDP in FY23, compared to 3.8% in FY22. Net assets of households declined significantly, dropping from Rs 22.8 trillion in FY21 to Rs 16.96 trillion in FY22 and further to Rs 13.76 trillion in FY23.
Household debt, measured by financial liabilities, remained high at 37.6% of GDP in FY23, up from 36.9% in FY22. The increase in financial liabilities in FY22 was the second-highest since India's independence, with the sharpest increase recorded in FY 2006-07 at 6.7%.
The primary reason for the decline in savings and the rise in borrowing is likely the combination of stagnant or decreasing household incomes in the face of rising inflation, as per the RBI's data.
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BJP central leadership backs Kerala chief Surendran amid Palakkad bypoll loss
Thiruvananthapuram (PTI): The national leadership of the BJP on Monday threw its weight behind the Kerala state unit and its chief K Surendran despite a major vote loss in the Palakkad Assembly bypoll, asserting that the party had put up a "good fight" in the recently concluded election.
Rejecting reports that Surendran had expressed a willingness to quit taking moral responsibility for the defeat in Palakkad, considered one of its strongholds in Kerala, the BJP accused the CPI(M)-led LDF and the Congress-led UDF of "spreading rumours."
"Nobody is resigning neither party has sought anybody's resignation. I think this will settle the matter," senior BJP leader and party's in-charge Kerala, Prakash Javadekar, said in a post on 'X'.
Youth Congress state president Rahul Mamkootathil won the Palakkad seat with a margin of over 18,000 votes, even making inroads into BJP stronghold areas, delivering a shock to the saffron party, which had been hoping to win the seat after finishing second in the past few elections.
Adding to the BJP's woes, the Left improved its performance in the seat, narrowing the gap with the party.
"BJP has given a good fight in recently concluded by-elections in Kerala and got a massive mandate in Maharashtra. We will win Palakkad and many more assembly seats in 2026. We are here to make a difference in Kerala politics. People are looking up to BJP," Javadekar said.
The senior leader claimed that more than 15,00,000 voters have become voluntarily members of the BJP, by giving missed call and full information.
"Our membership drive will continue vigorously," Javadekar said.
His statement came amidst reports that the defeat had triggered widespread dissent within the Kerala BJP against Surendran.
Surendran's critics within the party allege that he unilaterally decided to field C Krishnakumar, his preferred candidate, for the Palakkad seat.
Before the candidate's announcement, some senior leaders had publicly advocated for the firebrand party leader Sobha Surendran.
In protest against Krishnakumar's candidature, BJP's popular television face Sandeep G Varier resigned and joined the Congress just ahead of the by-poll, delivering a significant blow to the saffron camp.
In the by-poll, BJP's Krishnakumar secured 39,549 votes (28.63 per cent), while Congress candidate Mamkootathil won with 58,389 votes (42.27 per cent). CPI(M)-backed P Sarin garnered 37,293 votes (27 per cent).
Surendran sought to downplay the setback, stating it is common for the BJP to see reduced votes in Kerala by-elections.
He claimed that many votes for the BJP candidate "Metro Man" E Sreedharan during the 2021 Assembly polls were apolitical, with cross-party support. However, he admitted, "In Palakkad, there was a decrease in the number of votes. We will introspect on it."
