Tradition saving patterns were putting the money away in banks or scoieties but the boom in other investments saw the country's citizens moving into more risky investments.
Now with those in decline,Indians are reverting to their old ways of saving.The consequences being taht there is less availability of capital and puttng the financial sector under pressure.
According to the Economist
India's high savings rate has been a crucial driver of its economic boom, providing productive capital and helping to fuel a virtuous cycle of higher growth, higher income and higher savings. Since the 1990s, the gross domestic savings rate has risen steadily from an average of 23% to an estimated high of 35% in the 2006/07 fiscal year (April-March). The latter rate compares very favourably not only with developed economies (the US and the UK have savings rates of around 14%), but also with other emerging economies—with a few exceptions such as Malaysia (38%) and Chile (35%).
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