Minutes of Monetary Policy Committee meeting show that several members felt debt-fuelled consumption could become a ‘self-fulfilling prophecy’ to boost overall growth.
Data for 2022-23 shows households’ reliance on borrowings has increased not only to finance consumption, but also to purchase or construct property. Vehicle loans also saw an increase.
Paper co-authored by SBI chief economist Soumya Kanti Ghosh underscores how policies geared towards boosting real income and reducing inflation could help hike savings rate in India.
Over the past few years, especially post-pandemic, financial savings have been witnessing a shift with more households shifting away from traditional instruments such as bank deposits.
Unlike term plans that provide life risk cover or unit-linked schemes, where returns are market-linked, endowment plans offer maturity benefits upon survival & minimum guaranteed return.
Entrepreneur Jaithirth Rao's recent attack on Oxfam report on inequality ignores the fact that only the rich are getting richer in this beleaguered Indian economy.
Researchers from California, Pennsylvania and Chicago universities surveyed households in Rajasthan, UP, Bihar, Jharkhand, MP, and Maharashtra to also find a drastic fall in monthly income.
Proposed changes divert the borrower away from informal lenders and also show the RBI’s intent of giving the NBFC-MFIs a level-playing field in the financial system.
Incentivising informal sector workers to save is good, but creating separate schemes for different groups divides an already fragmented pensions market.
China patiently invested capital, skill and technology in coal gasification. Unlike it, we won’t move from words to action. As crude prices decline, we lose interest.
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