India’s economic growth faces a significant threat as household savings have reached a 16-year low, according to data from the Reserve Bank of India. Household financial assets, including bank deposits and equity investments, after accounting for debt servicing and consumption, declined to 5.1% of GDP in the fiscal year ending March, down from 7.2% in the previous year. This alarming drop could constrain resources for the broader economy, including government funding for infrastructure and capital investments. Rising debt payments, exacerbated by stagnant real wages and inflation, have contributed to this decline in savings. Economists express concern that a lack of domestic savings may necessitate increased reliance on volatile foreign capital to fund necessary investments, potentially risking economic stability.