Realty, gold soak up nearly two-thirds of household savings

That Indians are in love with fancy houses and precious metals is no secret. This only gets affirmed by the sharp rise over the past five years in the share of national savings diverted from financial assets, such as bank deposits, bonds, mutual funds, equities and insurance & pension funds, to physical ones — land, buildings and precious metals. This diversion has led to a corresponding fall in the flow of capital to productive sectors, affecting the capex cycle and economic growth.

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