A study on trends and patterns of household’s saving and investment on economy

Abstract

It is very important to know about the importance and significance of how much household sector of a country contribute to the growth of respective economy, this paper briefly explore the concepts of household savings, household investments which a re so closely related and dependent variables, it has been stated that a household saving holds the more than 50% capital formation of a country, and it goes up and down due to many factors impacting economy of a country, such as fluctuation, employment, technology growth etc. households as has major of their saving and investments in physical assets which is much better to gradually shift to financial assets, and different platform for saving and investment. therefor the trend of investment and savings will be transparently be traced and measured. It has been explored that domestic saving ra te of India's economy has a slowdown 2.3% in 2019 compare to 2018, and 1.2% than 2017. In general, domestic savings has a slowdown from 2011, till current years. It has been stated that the GDP in 2020 has contracted 23.9% in the second quarter of year, compare to previous years it is the lowest rate GDP has been affected by Covid-19 pandemic. The data in this paper is secondary data which is been evaluated.