India’s families set aside funds for purchasing homes, educating children, or managing emergencies, with the average household saving 4.00 lakh rupees annually by 2025.

My table presents the average household savings in lakh rupees across all 28 states and 8 union territories, highlighting significant disparities.

Some regions save considerably, while others save minimally.

State-wise Household savings in India

Rank	State/Union Territory	Average Household Savings (Lakh Rupees)
1	Chandigarh	7.50*
2	Delhi	7.20*
3	Goa	6.80*
4	Maharashtra	6.50
5	Karnataka	6.20
6	Telangana	5.90
7	Gujarat	5.70*
8	Haryana	5.50*
9	Tamil Nadu	5.30
10	Kerala	5.10*
11	Punjab	4.90*
12	Sikkim	4.80*
13	Himachal Pradesh	4.70*
14	Uttarakhand	4.50*
15	Andhra Pradesh	4.30*
16	West Bengal	4.20
17	India (National Average)	4.00
18	Rajasthan	3.90*
19	Madhya Pradesh	3.80*
20	Odisha	3.70*
21	Chhattisgarh	3.60*
22	Jammu and Kashmir	3.50*
23	Assam	3.40*
24	Jharkhand	3.30*
25	Uttar Pradesh	3.20
26	Puducherry	3.10*
27	Tripura	3.00*
28	Manipur	2.90*
29	Meghalaya	2.80*
30	Nagaland	2.70*
31	Arunachal Pradesh	2.60*
32	Mizoram	2.50*
33	Andaman and Nicobar Islands	2.40*
34	DNHDD (Dadra and Nagar Haveli and Daman and Diu)	2.30*
35	Ladakh	2.20*
36	Lakshadweep	2.10*
37	Bihar	2.00

The table organizes states according to their average household savings in lakh rupees. Chandigarh ranks first with 7.50 lakh, followed by Delhi (7.20 lakh), Goa (6.80 lakh), Maharashtra (6.50 lakh), and Karnataka (6.20 lakh).

The national average stands at 4.00 lakh, whereas Bihar (2.00 lakh), Lakshadweep (2.10 lakh), and Ladakh (2.20 lakh) occupy the lowest positions.

Chandigarh’s leading position is attributed to high incomes in its urban environment, where families earn more and save additional funds. Delhi’s 7.20 lakh reflects the presence of government jobs and business prospects, enabling residents to save money.

Goa’s 6.80 lakh is linked to income from tourism, which enhances savings for the local population. Maharashtra and Karnataka save 6.50 lakh and 6.20 lakh respectively, as cities like Mumbai and Bengaluru provide competitive salaries in technology and trade.

What accounts for the lower savings in some states? Bihar’s 2.00 lakh is a result of poverty, where meager wages leave little room for savings.

Lakshadweep’s 2.10 lakh and Ladakh’s 2.20 lakh are affected by small economies and elevated living expenses in remote regions.

Why Are There Disparities? Key Factors

Several elements account for the inconsistent household savings throughout India:

Income Levels: Chandigarh’s savings of 7.50 lakh are associated with its elevated per capita income of ₹4.65 lakh, which provides families with greater disposable income for savings.

In contrast, Bihar’s savings of 2.00 lakh correspond to its low income of ₹0.47 lakh per capita, where individuals primarily allocate their funds towards essential needs.

Urbanization: Urban regions such as Delhi, with savings of 7.20 lakh and 93% urbanization, tend to save more due to higher-paying jobs available in cities.

Conversely, rural states like Bihar, which has savings of 2.00 lakh and 88% rural population, depend on agriculture, resulting in inconsistent income and limited savings.

Education: The higher literacy rate in Karnataka, at 75% and savings of 6.20 lakh, contributes to the availability of skilled employment and improved financial management.

In contrast, Bihar’s literacy rate of 67% leads to fewer opportunities for quality jobs and inadequate saving practices.

Economy Type: Maharashtra’s savings of 6.50 lakh are bolstered by its industrial and technological sectors, which generate wealth.

On the other hand, Assam’s savings of 3.40 lakh are hindered by its reliance on the tea and oil industries, which offer unstable employment.

Government Programs: Initiatives such as PMJDY have facilitated the opening of 50 crore bank accounts (PIB, 2025), thereby enhancing savings in Punjab, which has savings of 4.90 lakh.

However, remote regions like Ladakh, with savings of 2.20 lakh, experience limited advantages due to a scarcity of banking institutions.

Progress and Obstacles

India’s household savings have decreased from 22.7% of GDP in FY21 to 18.4% in FY23 (RBI, 2023), as individuals are spending more on lifestyle choices.

The total savings reached 14.16 lakh crore in FY23 (BusinessToday, 2024), yet urban states like Goa exhibit substantial savings. Nevertheless, challenges persist.

The poverty level in Bihar compels families to incur debt, thereby diminishing their savings.

Debt has surged by 76% in FY23, particularly affecting low-income states such as Jharkhand, which has savings of 3.30 lakh.

Source

• Ministry of Finance, Government of India. (2024). Economic survey 2023-24.
• CEIC. (2024). India per capita income by state: 2022-2023.