CEA: Indian Families Shift Savings to Markets, Pensions
Indian families are moving their savings away from bank deposits and into markets and pension products, the Chief Economic Adviser said on NPS Diwas.
Equity and mutual fund investments now make up 15 per cent of household savings, up from just 2 per cent in 2011-12, the CEA said.
The share of bank deposits has fallen from 58 per cent to 35 per cent over the same period. Monthly SIP flows have jumped from Rs 4,000 crore to Rs 28,000 crore.
But pension assets remain small. They stand at 17 per cent of GDP, far below the OECD average of about 80 per cent, the CEA noted.
The shift reflects higher financial awareness and better returns from markets. Regulators have also pushed investor education and simpler products.
The government wants more households to build long-term retirement savings. NPS Diwas is observed each year to promote the National Pension System.
Experts say the trend is likely to continue as incomes rise.
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