India's households are not saving and that's causing an economic slowdown

About 89% of the physical household savings are in the form of property and buyers are postponing property purchases

Factories are running at below 75 per cent of their capacity for at least three years, leading some policymakers to argue for a sharp rate cut by the Reserve Bank of India. A rate cut would lead to cheaper cost of funds and will drive demand, which, in turn, will lead to improved capacity utilisation, goes the underlying theory. A lower interest rate would also help companies increase their capital expenditure, leading to more investment, which, in turn, would lead to higher economic growth.
 
However, an analysis of savings and investment data for the past few years shows that