Household savings to recover in H1 FY25 as debt load eases

Net household financial savings in India improved from 5% of GDP in FY23 to 5.3% in FY24, and early indicators suggest a sharp rebound in the first half of FY25. This upturn is attributed to reduced household liabilities, boosted insurance savings, lower currency holdings, and robust capital market investments. Household debt also increased, reaching 41% of GDP in FY24.

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