PAPER ID:IJIM/V.2(I)/9-15/2

AUTHOR: H.S.Umesha and Dr. B. C. Neelakanta

TITLE : SECTOR WISE DOMESTIC HOUSEHOLD SAVINGS IN INDIA:
AN ECONOMIC ANALYSIS

ABSTRACT: Capital formation plays an important role in increasing the production potential of the economy and bringing about balanced growth of the different sectors of the economy and additional capital bring about technical progress in the economy. Capital formation also plays a significant role both in deepening and widening the industrial base of a developing economy like India. In view of this, present study was conducted with the aims to analyze the sector wise contribution to savings in India after globalization. So it covers the period from 2004-05 to 2014-15. Data obtained from various volumes of Economic Survey of Government of India.
It has been concluded form the study that to lead the underdeveloped countries to the path of development, rate of savings must be enhanced, to achieve higher rate of growth with relative price stability, the marginal propensity to save should be appropriate incentives and policies. In the Indian economy, the household sector contributes a lion’s share of the total savings and hence, to step up savings in the economy, saving rate of the household sector should be stepped up both in the rural and urban sectors.

KEYWORDS: Capital formation, Sector Wise Domestic Household, Urban Sector, Economic Survey,

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