India’s slowing economy took a toll on much-needed savings too, with the savings rate touching a 15-year low, and household savings also falling. This has weakened India’s macro-economic position which is already hobbled by low investment and rising external borrowing to fund capital needs. Household savings also declined as consumers spent more in purchasing durables and travelling. Indian households contribute to about 60 per cent of the country’s savings. But India remains favourable compared to emerging market peers such as Brazil. “If the country wants high sustainable growth, it must raise the investment rate. But investment needs funding,” said Pranjul Bhandari, chief India economist at HSBC.