China Tops First in Savings, India ranks Fourth Globally
Reportedly india has long maintained a culture of savings, a tradition that continues to thrive even in the data-face of modern financial shifts. According to a recent report by the bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">state bank of india (SBI), the country’s savings rate stands at 30.2%, surpassing the global average of 28.2%. This positions india as the fourth-largest saver globally, trailing only china (46.6%), indonesia (38.1%), and russia (31.7%).Perhaps the sbi report, which is part of its Ecowrap series, underscored the evolution of saving habits in the country which witnessed a remarkable shift towards financial inclusion, with over 80% of adults now using formal financial accounts, compared to just 50% in 2011. This trend highlights the growing accessibility of financial services and the increased participation of the population in the formal economy. While traditional savings methods, such as bank deposits and cash holdings, still play a role in the financial landscape, newer investment vehicles have gained significant traction. The preference for instruments like mutual funds and equities is on the rise, with Systematic Investment Plan (SIP) registrations seeing a fourfold increase since FY 2018, reaching a total of 4.8 crore SIP accounts.Moreover SBI’s analysis also highlighted a potential correlation between market capitalisation and economic growth. The report suggested that a 1% rise in market cap could contribute to a 0.6% increase in GDP growth. Over the past decade, the amount raised by companies through the capital markets has surged dramatically. In FY 2014, firms raised Rs 12,068 crore, a figure that ballooned to Rs 1.21 lakh crore by october 2024.