Vol. 7, Issue 12, Part A (2021)

Abstract
The household sector is the largest contributor to the GDP of the Indian economy so it is very much important to know how much does this sector contributes to the growth of this economy. It is being estimated that the household sector holds more than 50 percent capital formation of the country and due to many factors, such as employment, technological growth, etc., these fluctuates. Traditionally the household savings were limited to physical assets but due to a changing economic situation, there has been a slight shift from physical to financial assets taking different platforms of savings and investment. The Indian economy has experienced a slowdown in domestic savings in the year 2019 which was 2.3 percent than in 2018 and 1.3 percent than in 2017. The Indian domestic savings has consistently faced a slowdown from 2011 to date. Due to the COVID-19, the GDP of India in the second quarter of 2020 was contracted to 23.9 percent, which was estimated as the lowest rate of GDP. This paper explores the concepts of household savings, investment, and its dependent variables by using secondary data.