Economists have said the ‘savings glut of the rich’ lowers aggregate demand and limits the size of the market
Net financial assets of households did increase. But that’s because the decline in household borrowings was sharper than that in bank deposits.
A decade ago, investment and exports powered India’s growth, while the share of consumption in GDP declined; in recent years, however, consumption has been the only growth engine and even that is now faltering
A construction boom will drive the creation of unskilled and low skill jobs.
The idea is to set a savings target of 15-25 percent of one’s gross annual income and deposit this money in a mental account called “My Goals”
In a recent speech, Finance Minister Arun Jaitley called for lower deposit rates in the economy, saying high interest rates on savings instruments translate into higher cost of lending and lead to sluggishness in the economy.