According to an analysis by brokerage Motilal Oswal Financial Services, it is projected that there was an unlikely winner in the pandemic-ravaged year where people were forced to remain indoors for most of the year, which helped the Household savings to rise 22.5 percent of GDP from 19.8 percent in 2019.

However, households' physical savings declined to a low 5.8 percent of GDP in the April-June period -- when the whole nation was under a strict lockdown -- and almost half of the pre-pandemic levels,. However, the same recovered strongly to reach a multi-year high of 13.7 percent of GDP by the December quarter.

According to the latest data from the RBI, household non-financial savings stood at 21.4 percent of GDP in the June quarter of 2020, and 10.4 percent in the September quarter, as against 7-8 percent of GDP in the pre-pandemic period. However, this fell to 8.4 percent in the December quarter. The RBI data also show that gross financial savings fell to 13.2 percent of GDP, while financial liabilities amounted to 4.8 percent of GDP in the December quarter. In comparison to the September quarter, households increased their savings in currency and investments, but savings fell sharply in the form of deposits, pensions, and small savings.

While households borrowed more from banks, their liabilities with non-banks and housing finance companies declined in the December quarter. As against 10-12 percent of GDP in the past decade, gross financial savings were still higher at 13.2 percent of GDP in the December quarter. In contrast, financial liabilities stood at 4.8 percent of GDP.

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