India is having a long-term oriented culture where people are more focused on their future rather than present. Due to this the savings rate in India has always remain at a significant level. India’s savings performance has been quite impressive in a cross-country context. India’s gross domestic savings rate in the recent period is comparable to Indonesia, Thailand and Korea, much lower than that of China, Malaysia and Singapore but much higher than that of many other emerging and advanced economies. India ranked 2nd in terms of gross domestic savings among top 10 economies of the world in the year 2015, just below that of China. The gross domestic savings which stood at around 23 per cent in 1990 has reached around 35 per cent in 2015, well above the world average of 23.5 per cent. Various factors which resulted in an increase in gross domestic savings rate are rapid economic growth, large scale migration of rural population to urban area, Rise in income of government employees after 6th pay commission, persistence of saving habits among households, awareness programs by government and financial institutions etc. Household savings has always remained a major component of gross domestic savings followed by private corporate savings and public sector savings. It was the result of high savings rate that the Indian economy stand strong during the global recession of 2008. During the tenth five year plan i.e. from 2002-2007 the increasing in gross domestic savings was maximum among all. Bank deposits have always remain the most preferred avenue for savings for households. Total deposits in Indian banks crossed Rs100 billion mark in 2017.
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