Business Standard

The worrying trend in household savings

With the share of physical assets rising, the responsibility to free up resources to fund corporate capex shifts to the government

savings
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Illustration: Binay Sinha

Janak Raj
Household sector savings play a critical role in financing corporate investment, as this is the only sector that is a net saver. Financial savings of households have assumed a special significance as the private corporate sector’s capital expenditure (capex), which had some false starts in the recent past, could now be expected to pick up, with the  uncertainty about the outcome of the general elections behind us, suggesting policy continuity. Other conditions continue to be conducive, such as healthy twin balance sheets (of companies and banks) and buoyant equity market. Additionally, the domestic interest rate cycle seems
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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