'No surprise that despite a large borrowing calendar, bond yields haven’t spiked,' HSBC economists said India’s consumers can’t be counted upon to spur economic growth through spending as they did before, but their savings can help fund an increase in government borrowings, according to HSBC Holdings Plc.
Rising savings during the nationwide lockdown imposed on March 25 will also help in curtailing India’s current account deficit as the need to raise capital abroad diminishes, economists led by Pranjul Bhandari wrote in a report to clients.
Before the pandemic arrived, India’s gross savings rate had dipped to a more than decade-low of 30.1% in 2019, down from 37.8% in 2008, as companies, government and the consumers splurged. “We may