The declining (some say correctng) Indian stock markets have caused Indians to trun back to the safety of good old bank deposits and fixed deposits.
Estimating our total household savings at Rs9.85trn (US$192bn) in 2006/07, The Economist say in its report on India's Savings Trends:
Since the 1990s, the gross domestic savings rate has risen steadily from an average of 23% to an estimated high of 35% in the 2006/07 fiscal year (April-March).
... India's household sector (including some small businesses) continues to account for the lion's share—some 70%—of savings. Yet much of Indians' physical savings is still locked up in unproductive physical assets—such as houses, durables and jewellery—that households are only slowly converting into financial assets.
In the future, on thing is sure: there will be no job security. So, save your money wisely. If you want to save for the long run, and be a part of the country's growth at the same time, invest in Post Office, PPF (Public Provident Funds) or Long-term bank deposits, most of which enjoy tax benefits as the givernment has stipulated that almost 80-90% of this money is invested in crucial infrastructure and other beneficial long-term projects. Do not gamble it away in the stock market either. Remember, Insurance and Investment are two different things.
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