Households Steer Towards Financial Assets: Economic Survey Insights

Chief Economic Advisor V Anantha Nageswaran highlighted the increasing trend of households investing in financial assets, as these investments aren't fully captured in national income data. The Economic Survey 2023-24 revealed a significant rise in registered investors and an improvement in household savings in both financial and physical assets.

Chief Economic Advisor V Anantha Nageswaran on Monday emphasized that household investments in financial assets have surged, though these are not fully reflected in national income statistics.

According to the Economic Survey 2023-24, presented in Parliament, the number of registered investors at the National Stock Exchange (NSE) nearly tripled from March 2020 to March 2024, reaching 9.2 crores by March 31, 2024. This figure suggests that around 20 percent of Indian households now invest their savings into financial markets.

Nageswaran addressed the media, stating that households are not experiencing distress but are, in fact, benefiting from investments in financial assets. The default rates on small-ticket loans show no signs of distress, and savings in physical assets have risen from 10.8 percent in fiscal 2020-21 to 12.9 percent in 2022-23. However, the national data do not account for these investments at market prices, which contributes to the perception that financial liabilities are growing faster than assets.

(With inputs from agencies.)