Friday, 15 January 2010

India is a saving and investing economy

Indian express has an excellent article on the latest CMIE survey.

Some key points:

  • Indians spend 25% of income on food, 1.5% on health, 1.4% on EMIs
  • Over 26 per cent of households described themselves as borrower households, of these over 70 per cent borrowed from friends/relatives/moneylenders and just over 25 per cent from banks.
There are several others, please take some time to read this.

However, the key for me is

The national household savings rate is a very healthy 40.41%. There are interesting variations among states. Delhi and Maharashtra are high savings states (47.72 per cent and 49.72 per cent savings rates, respectively, higher than the national average), while Bengal and Andhra Pradesh (27.45 % and 22.03%) are significantly low savings states.

Nearly 59 per cent of households in India are investing households, according to CMIE data.
If an average household saves 40% of its earnings and 59% of these households invest money, then our economy is in good shape.

Before I end, could not this information be presented in a tabular format? Would have been simpler to understand and occupied far less space.