According to a report by Elara Securities, India's goal of becoming one of the world's biggest and fastest-growing economies hinges on how well it converts family savings into useful assets.
According to the report, favourable demographics, economic policies, government reforms, and a strong digital public infrastructure are all contributing to the significant change in India's family savings structure.
It stated that these elements are anticipated to cause a clear change in the way Indian households invest and save during the ensuing years.
It said "India's aspiration to be the fastest growing economy while becoming one of the largest economies depends on directing household savings into productive assets" .
As to a report by Elara Securities, India's goal to rank among the world's fastest-growing and largest economies hinges on how well it converts family savings into productive assets.
According to the report, thanks to favourable demographics, economic policies, government reforms, and a strong digital public infrastructure, India's family savings structure is undergoing a significant transition.
According to the report, these variables are anticipated to cause a noticeable change in the way Indian households invest and save over the next several years.
It read: "India's aspiration to be the fastest growing economy while becoming one of the largest economies depends on directing household savings into productive assets" .
The survey also pointed out that although India's savings' return, risk, and liquidity profile is changing dramatically, financial savings are still not as widespread as they are in other major nations.
According to the broking, India's gross financial savings will increase by more than three times, accounting for approximately 11–12% of GDP.
According to the report, India has a greater household savings rate than many other nations when expressed as a percentage of gross disposable income. This high savings rate contributes significantly to maintaining economic growth and is an essential local source of money for investments.

Traditional means of saves, like currency holdings and bank accounts, have been giving way over time to capital markets, savings, and pension plans.

It ascribed this shift to shifting consumer habits and the growth of digital public infrastructure, which has facilitated easier access to and convenience with regard to financial investments.
The study outlined a number of significant trends influencing India's saving habits. Banks are facing difficulties since the share of deposits in incremental flows has decreased from above 50% in FY71–80 to less than 40% as of FY24.
According to the report, currency holdings have remained relatively stable at around 10% over the last forty years, which could indicate a preference for using cash as a store of value despite the increase in digital transction.

Additionally, it stated that the need for greater returns and long-term wealth development is driving an increasing amount of savings towards capital markets and pension plans.
According to the research, these products offer sovereign security, tax advantages, and higher yields than conventional bank deposits.
According to the paper, India's economic development will be greatly aided by the changing pattern of household savings.