India has a higher domestic savings rate than the US, the UK, Germany, and Japan but less than China, Singapore, and Indonesia, according to AMFI-Crisil Factbook 2024.
However, the factbook highlights that India has demonstrated a higher gross domestic savings as a percentage of GDP than the global average.
The global average domestic savings in calendar year (CY) 2023 was 27% while for India it was 29.3%. In comparison, the domestic savings rates were 44.4% in China, 58.5% in Singapore, and 38.1% in Indonesia. The US, UK, Japan, and Germany had domestic savings rates of 18.7%, 16.6%, 24.6%, and 25.7% respectively.
"In 2023, India's gross domestic savings as a percentage of GDP rose to 29.3%, reflecting an upward trend from 2022 when it was 28.4%, highlighting the economy's recovery and improved income levels," the factbook said.
"India remains favourable in terms of gross domestic savings rate compared with the world average of 27.0%. In absolute terms, household savings in India has grown at a CAGR of 8.3% between fiscals 2012 and 2023 to reach D 49.62 lakh crore," it added.
Domestic household savings rates of 11 countries
| Country | Domestic savings rate (%) |
|---|---|
| Singapore | 58.5 |
| China | 44.4 |
| Indonesia | 38.1 |
| India | 29.3 |
| Germany | 25.7 |
| Japan | 24.6 |
| Malaysia | 27.6 |
| United States | 18.7 |
| United Kingdom | 16.6 |
| South Africa | 16.3 |
| Philippines | 9.2 |
Source: AMFI-Crisil Factbook 2024
Share of mutual funds in household savings
The share of mutual funds in net savings of Indian households remained consistent between March 2021 and March 2023. However, there was a decline in other constituents of financial savings such as bank deposits and currency.
The share of mutual funds in net savings was 7.6% in March 2021, which increased to 8.5% in March 2022. It was 8.4% in March 2023.
The household savings in physical assets and financial assets were 71.5% and 28.5% respectively as of March 2023.
Meanwhile, the growth in mutual funds' AUM increased to ₹53.4 lakh crore as of March 2024 from ₹23.8 lakh crore in March 2019 at a CAGR of 17.5%. But bank deposits increased only at a CAGR of 11% from ₹212.53 lakh crore as of March 2024 from ₹126.39 lakh crore in March 2019.