SBI Research has challenged claims that India's household savings hit a 50-year low in FY23, stating that this is misleading. The report suggests that the drop in household financial savings may be due to increased ownership of physical assets, possibly prompted by low interest rates and real estate market changes during the pandemic.
It emphasizes that household savings should be assessed as a total of physical and financial savings. The shift towards physical assets is linked to low-interest rates and real estate sector recovery. Total household savings for FY23 are expected to exceed FY22 levels, underscoring this shift.