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India has long had a culture of saving and this tradition continues to grow in the face of modern financial changes. According to a recent report by the State Bank of India (SBI), the savings rate in India is 30.2 percent, higher than the global average of 28.2 percent. This makes India the fourth largest saver in the world after China (46.6%), Indonesia (38.1%) and Russia (31.7%). The SBI report, part of the Ecowrap series, shows the evolution of savings habits in a country that has seen a significant shift towards financial inclusion, from 50 percent of adults in 2011 to more than 80 percent of adults now having formal savings Use methods. Financial accounts illustrate this trend of increasing access to financial services and citizen participation in the formal economy.

While traditional savings methods such as bank deposits and cash holdings still play an important role in the financial landscape, new investment instruments are also becoming increasingly important. The preference for products like mutual funds and stocks is increasing and the number of Systematic Investment Plan (SIP) registrations has quadrupled since FY18 to a total of 4.8 billion SIP accounts. Additionally, investments in stocks and bonds have also increased, reflecting broader changes in savings strategies. Ten years ago, corporate stocks and bonds accounted for just 0.2 percent of GDP, but in fiscal year 2024 that figure will rise to 1 percent. In addition, the report showed that net financial savings, which represents the proportion of domestic savings invested in financial assets, have increased steadily. From 36% of total savings in 2014, this share rose to 52% in 2021, but fell slightly in 2022 and 2023.

SBI's analysis also found a possible connection between market capitalization and economic growth. The report shows that a 1 percent increase in market value can increase GDP growth by 0.6 percent. Over the last decade, the amount of money companies are raising through capital markets has increased dramatically. In fiscal 2014, the companies raised Rs 12,068 crore, increasing to Rs 1,210 crore by October 2024.