96 % of Indians can't survive long if income stops: Study
Though a lion's majority of Indian households save for the future, a whopping 96 per cent of the houses cannot survive beyond a year on their current savings in case of loss of income due to some eventuality, a survey has said.
By PTI |
NEW DELHI: Though a lion's majority of Indian households save for the future, a whopping 96 per cent of the houses cannot survive beyond a year on their current savings in case of loss of income due to some eventuality, a survey has said.
Throwing light on the saving habits in urban and rural areas, Max New York Life-NCAER survey also said an average city household saves Rs 26,762 per year which is almost double the amount saved by its counterparts in hinterlands.
The study was released here by Planning Commission Deputy Chairman Montek Singh Ahluwalia.
The survey also pointed out the income disparity between urban and rural households. Households in urban areas earn 85 per cent more than the rural houses, it said.
"Expenses of urban households are substantially higher at Rs 69,065 per annum than Rs 40,309 per annum in rural areas," the study added.
In absolute terms, the income of urban household is Rs 95,827 per annum in 2004-05 against Rs 51,922 per annum in hinterlands.
Noting that 81 per cent of Indian households save for the future, the survey said while income level is an important factor in influencing the saving patterns of households, variations in savings behaviour are equally decided by education level and occupation.
Surprisingly, even poor households save despite being in debt, it said.
Stating that contractual saving should be encouraged by making it a 'default option', Ahluwalia said people should be given option to opt out of the saving obligation.
He also said, NCAER should conduct such survey at regular interval of five years to help the government and industry changes in income trends which is not captured by National Sample Survey
Throwing light on the saving habits in urban and rural areas, Max New York Life-NCAER survey also said an average city household saves Rs 26,762 per year which is almost double the amount saved by its counterparts in hinterlands.
The study was released here by Planning Commission Deputy Chairman Montek Singh Ahluwalia.
The survey also pointed out the income disparity between urban and rural households. Households in urban areas earn 85 per cent more than the rural houses, it said.
"Expenses of urban households are substantially higher at Rs 69,065 per annum than Rs 40,309 per annum in rural areas," the study added.
In absolute terms, the income of urban household is Rs 95,827 per annum in 2004-05 against Rs 51,922 per annum in hinterlands.
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Noting that 81 per cent of Indian households save for the future, the survey said while income level is an important factor in influencing the saving patterns of households, variations in savings behaviour are equally decided by education level and occupation.
Surprisingly, even poor households save despite being in debt, it said.
Stating that contractual saving should be encouraged by making it a 'default option', Ahluwalia said people should be given option to opt out of the saving obligation.
He also said, NCAER should conduct such survey at regular interval of five years to help the government and industry changes in income trends which is not captured by National Sample Survey
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