India’s economic story has often been told as a tale of youthful energy, expanding consumption, and rapid growth. Yet, beneath this narrative lies a quieter but equally important factor: the country’s savings rate. Once a pillar of India’s economic strength, the savings rate has been steadily eroding over the past decade, raising questions about the sustainability of growth driven mainly by consumption.

In the early 2000s, India’s gross domestic savings touched close to 35–36% of GDP. This was comparable to some of the fastest-growing Asian economies and provided the foundation for strong investment-led growth. Today, that rate hovers closer to 29–30%.

By contrast, China continues to save well above 45%, and several other Asian peers remain ahead of India. Why does this matter? A high sa

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