Family savings have doubled over the past 5 years; discretionary spending to increase
Latest trends show that India is witnessing a steady increase in family savings, along with which discretionary spending is expected to increase by 2.5 times. In the meantime, the reduction in costs will be followed by an increase in the consumption of goods.
According to SBI Ecowrap, through 2021 family savings have more than doubled in five years. In 2015-2016, India saw a total of around 15 lakh crore rupees, which in 2020-2021 rose to over 31 lakh crore rupees. On Tuesday, Motilal Oswal Private Wealth released a report which hints that by 2030, India’s total family savings will increase fourfold and arbitrary spending will increase tenfold!
Ashish Shankar, MD and CEO of Motilal Oswal Private Wealth said, “The country will experience continued economic growth in this decade with rising incomes. By 2025, the number of super abundant people in the country will rise to 11,198. While in 2020, there were only 6,884”.
Super abundant individuals are those who possess a wealth of more than Rs 240 crore.
According to an SBI Ecowrap report, the first three months of the current fiscal year are expected to see an economic development rate of 15.7%. Barely three months earlier, that is to say during the months of January to March, the rate of economic development was only 4.1%. This increase should be the result of the service sector getting back on track.
With this, according to estimates by Shaktikant Das, Governor, RBI, India may experience significant price declines with retail inflation rates decreasing to 4% over the next two years.
Das said, “Commodity prices have gone up as much as they could. The prices have started falling now and the RBI is monitoring the development of the trend and all possible measures to reduce the prices will be taken”.