New Delhi, March 17 (IANS) The household savings as a percentage of GDP have increased from 20 per cent in 2022-23 to 21.7 per cent in 2024-25, as per the new series of GDP estimates (Base Year 2022-23), the Parliament was informed on Tuesday.

Minister of State for Finance, Pankaj Chaudhary, said in the Rajya Sabha that household savings are an important source of financing investments in the economy and also play an important role in strengthening the financial resilience of households.

“Over the recent years, the government has undertaken policies aimed at improving ease of doing business, expanding skilling initiatives, generating employment, promoting inclusive human resource development, and strengthening infrastructure, which are expected to support sustained growth in household incomes and savings,” he noted.

Further, recent policy measures, such as income tax exemption for annual incomes up to Rs 12 lakh and GST rate rationalisation, are expected to increase disposable incomes, thereby supporting higher household consumption, savings and investment over the medium term, and thereby reducing over-dependence on credit, the minister added.

Replying to a separate question, Chaudhary said there has been no food or fuel inflation in 2025-26.

Retail food prices, on average, declined to (-) 0.98 per cent during the financial year 2025-26 (April–January) from 7.3 per cent in FY 2024-25.

“In the new CPI series, there is no separate fuel category. The average fuel inflation as per WPI is (-)3.16 per cent during April -January of FY 2025-26. The prices of global crude oil as well as the Indian basket had been on a declining trajectory over the past year; however, recent geopolitical tensions in West Asia have pushed prices above the $100 per barrel mark,” the minister noted.

Food and fuel inflation are influenced by a combination of domestic and global factors. Food inflation is primarily driven by agricultural output, which depends on monsoon performance, weather conditions, seasonal supply variations, input costs such as fertilisers, energy and labour, as well as supply chain, transport and storage infrastructure.

–IANS

na/vd