Is this the first time in 2015-16 that Household financial savings are higher than Household Physical Savings?

There have been some comments over this RBI Annual Report table which indicates household financial savings being higher than physical savings. The idea is that thanks to several government measures we are seeing people moving towards financial savings over physical savings.

One just dug out the savings data from 1950-51 onwards and we see quite a few times this has happened. I have highlighted those years in Red. First time we see fin savings higher than physical ones is 1981-82 which continues till 1986-87 barring one year in the middle. Then we see from 1991-92 to 1998-99. Then there is just one year in 207-08 where this happens on the hype of 9% growth. Will have to figure the reasons for other years.

Year Financial Savings Physical Savings
1950-51 0.6 6.2
1951-52 0.1 6.2
1952-53 0.7 6.2
1953-54 1.4 5.3
1954-55 2.8 4.9
1955-56 4.3 6.1
1956-57 3.3 8.9
1957-58 2.9 7.4
1958-59 3.6 6.2
1959-60 4.3 8.3
1960-61 4.6 7.7
1961-62 4.9 7.5
1962-63 5.0 10.2
1963-64 7.4 8.5
1964-65 7.1 11.8
1965-66 10.7 15.2
1966-67 8.6 23.0
1967-68 8.7 24.1
1968-69 8.0 24.8
1969-70 9.2 34.6
1970-71 13.7 31.6
1971-72 15.6 36.7
1972-73 21.3 32.0
1973-74 36.1 44.1
1974-75 23.7 63.0
1975-76 39.2 58.7
1976-77 48.5 63.5
1977-78 58.5 78.3
1978-79 66.6 98.2
1979-80 60.8 102.6
1980-81 86.1 95.1
1981-82    96.1 94.0
1982-83    127.4 92.3
1983-84 132.9 136.6
1984-85    178.8 149.2
1985-86    185.4 181.3
1986-87    233.4 187.8
1987-88 268.2 304.8
1988-89 271.8 398.8
1989-90 380.0 449.9
1990-91 496.4 589.6
1991-92    621.0 435.3
1992-93    653.7 625.8
1993-94    947.4 567.2
1994-95    1207.3 664.1
1995-96    1057.2 928.7
1996-97    1416.6 829.9
1997-98    1467.8 1373.5
1998-99    1803.5 1717.7
1999-00 2066.0 2322.5
2000-01 2152.2 2485.3
2001-02 2474.8 2978.1
2002-03 2532.6 3109.1
2003-04 3132.6 3443.3
2004-05 3279.6 4357.3
2005-06 4383.3 4306.6
2006-07 4842.6 5101.4
2007-08    5802.1 5381.4
2008-09 5710.3 7598.5
2009-10 7747.5 8560.5
2010-11 7738.6 10263.2
2011-12 6322.0 14225.4
2012-13 7171.3 14952.8

Infact RBI Annual report table is for 2015-16 which have already been given earlier. It is not really new data:

From 2011-12, it has changed the style of reporting this data. It looks like as shown in the RBI Annual Report table. The figures are:

Gross financial saving Less financial liabilities Saving in physical assets Saving in the form of gold & silver ornaments
2011-12 9327.29 2901.2 13893.22 336.35
2012-13 10640.41 3304.25 14650.13 366.5
2013-14 11907.7 3586.79 14164.28 367.82
2014-15 12826.33 3633.85 15908.74 455.62
2015-16 15142.07 4317.55 14951.5 439.3

Infact if we add Gold and Silver to Physical Savings, the share of Physical Savings remains higher than Financial savings even in 2015-16.

We have seen in the past that if overall global financial environment goes for a toss, people switch back to physical savings. What will happen this time around is there to be seen…

Advertisements

One Response to “Is this the first time in 2015-16 that Household financial savings are higher than Household Physical Savings?”

  1. Interesting Articles on Investment, Personal Finance, Mutual Funds – 2nd Sep, 17 | Best Blog for Mutual Fund, SIP and Investment in India | RoboAdviso Says:

    […] Is this the first time in 2015-16 that Household financial savings are higher than Household Physical Savings? (Mostly Economics) […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.


%d bloggers like this: