Domestic saving has moderated driven by significant fall in public sector saving as government revenue deficit increased. More worrying has been a sharp deterioration in household saving in financial assets.
While full saving estimates for 2011–12 are not available, preliminary estimates suggest that household financial saving has plummeted to 7.8 per cent of GDP in 2011–12 from an already low of 9.3 per cent in 2010–11 as compared with an average of 11.6 per cent in the high growth phase.