Impact of Saving Motives on Household Savings

Saving motive is a desire to reserve certain portion of income for future needs. Noted economist Keynes has given eight factors which were believed to lead individuals to abstain from spending out of their incomes. The saving rate of household is affected not only by their ability to save but also by their willingness to save. India could be able to save 32 percent of its Gross Domestic Product irrespective of its low per capita income and high inflation rate mainly because of the attitude of people to save. This study attempts to find out the level of saving motive of Indian salaried class people. The study also aims to find out the relationship between saving and level of saving motives and the extent of influence of saving motives on household saving.