The rate of financial savings of the household sector stood higher at 11.8 per cent of gross domestic product at current market prices in 2003-04 compared with the revised estimate of 10.7 per cent in 2002-03, said the Reserve Bank of India in its annual report 2003-04.
The household sector in 2003-04 reflected its keenness for saving in the form of deposits, claims on government, currency and contractual schemes (life insurance, provident and pension funds).
The gross domestic savings (GDS) rate moved up to 24.2 per cent of GDP in 2002-03 from 23.5 per cent in the preceding year, said the Central Statistical Organisation.
The improved aggregate saving was entirely due to reduced public sector dis-saving, which contracted to 1.9 per cent of GDP in 2002-03 from 2.7 per cent in 2001-02, reflecting improved government finances.
There was a switch in household savings in favour of physical assets from financial assets, the annual report said. Savings by the household sector - the principal saver - declined marginally to 22.6 per cent of GDP from 22.7 per cent over the same period.
The buoyancy of private corporate savings noticed from 1999-2000 continued in 2002-03 on the back of increased profits. As a ratio to GDP, however, private corporate sector saving declined marginally to 3.4 per cent in 2003-03 from 3.5 per cent in 2001-02.
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