Household income and its disposition

The importance of resource mobilisation in the process of economic development is acknowledged widely. Information on the structure and destination of savings forms an essential component of economic intelli gence of any country. In India the household sector is the major provider of savings and, as such, knowledge of the motivational and behavioural aspects of savings in this sector is crucial for the success of an effective savings strategy.

The National Council has over the years built up valuable data sets on the savings habits of the rural and urban households in the country through its household surveys. This study is yet another attempt at enriching the data base for this sector.

The study was undertaken by the National Council at the instance of the Ministry of Finance, Government of India. Data for analysis was collected from a scientifically chosen sample of 3,015 rural households selected from 237 villages in the country and 2,110 urban households. chosen from 150 cities/towns. Field visits were organised to the selected households and information was collected on their income, investment and savings with the help of a structured questionnaire. The information collected was for the agricultural year, July 1975-June 1976.

This report presents a detailed analysis of the pattern and distribution of income, investment, wealth and savings of the household sector in the country and the social, economic and demographic factors influencing it. The base data collected is presented in a separate volume.