Domestic Savings and the Indian Perspective

DOMESTIC SAVINGS- Savings is the difference between Income and Expenditure.A high level of savings helps the economy to progress on a continuous growth path since Investment is mainly financed out of savings. Given the importance of savings there have been extensive studies on the behavioral and other factors, which influence savings. Savings is income not spent, or deferred consumption. Methods of saving include putting money aside in a bank or pension plan saving also includes reducing expenditures, such as recurring costs. In terms of personal finance, saving specifies low-risk preservation of money, as in a account, versus investment, wherein risk is higher.Saving represents the excess of current income over current expenditure and it is the balancing item of the income and expenditure accounts and use of disposable income account of producing enterprises and households, government administration and other final consumers. For preparation of the estimates of domestic saving, the economy has been divided into three broad institutional sectors, which are:-
1. Public Sector
2. Private Corporate sector
3. Household Sector.

The Former Patterns of Indian Household Savings
Gross Domestic Savings in India has shown a steady and substantial rise from the 1950s along with the rise in income. As per Indian National Accounts, Gross Domestic Savings includes current transfers from Indian emigrants and net factor income from abroad. The overall savings period in India is roughly divided into five phases based on the careful identification of the distinctive phases starting from the year 1950.The household sector which is comprised of the pure households, non corporate enterprises in agriculture, trade and industry and private non profit making trusts, has retained a high savings rate in comparison to public sector savings and private corporate sector savings in all the phases.
The savings rate overall and the