“We saw in the pandemic that because people couldn’t go out due to restrictions, people built up precautionary savings," Patra explained. Despite the 14% increase in financial assets that Patra referred to, net financial assets declined due to a whopping 75.5% rise in financial liabilities of the households. Net financial assets are the difference between financial assets and financial liabilities. Patra said the increase in financial liabilities was due to a shift from financial savings to physical savings, and the money was mostly going to the housing sector. “They are shifting from financial savings to physical savings, which goes into investment.

Source: Mint October 06, 2023 18:34 UTC