New Delhi, Sept. 20 -- Fifteenth Finance Commission chairman N.K. Singh recently said India needs to raise its gross domestic savings rate of around 34% to 38-40% to support the investments required for Viksit Bharat.

Mint explains the role of the national savings rate in sustaining 7-8% economic growth.

India's gross domestic savings rose to 34.9% of gross domestic product (GDP) in 2024-25 from 32.8% in 2023-24, according to the latest Reserve Bank of India (RBI) data. When measured against gross national disposable income (GNDI), gross domestic savings increased to 34.2% from 32.3%.

Household financial savings have also improved. Net household financial savings rose to 7% of the GNDI in FY25 from 5.8% a year ago, helped by a decline ...