Savings Rate in Indian Economy since 1991

Pulapre Balakrishnan It has been widely noted that the estimated household saving rate has declined for almost three years running since 1991. This has been interpreted variously. The government of India has rushed to argue that the 'measured' decline might only reflect a methodological practice. On the other hand, critics of the reform process have argued that the decline is not only real but a direct consequence of the strategy adopted which has encouraged increased consumption of durable goods.