SEBI method lifts India FY25 gross savings ratio to 34.94%
India just updated its savings statistics for FY25, thanks to a fresh method from SEBI.
The country's gross savings-to-GDP ratio now stands at 34.94% (up from 34.47%), after counting more detailed data on how households invest in the markets.
Indian households favor mutual funds
SEBI's new approach tracks not just mutual funds but also secondary market moves, preferential allotments and private debt placements, and newer options like REITs and InvITs, stuff that wasn't counted before.
Mutual funds are now the main way Indian households save through the markets, making up over ₹5 lakh crore of the total ₹6.91 lakh crore in market-linked savings.
There's also a trend: people are moving away from direct stock picks (selling off ₹54,786 crore worth of shares) and leaning more toward managed investments since the pandemic.