Determinants and Motivation for Savings & Investment of Middle Class Income Households in Nagpur

Savings is defined as the difference between income and consumption. The importance of savings cannot be underestimated particularly for a developing economy like India, as it is this part of total income which contributes to the much needed capital formation. A study on the motives & determinants of savings of the population particularly with an annual income between Rs. 90,000 to Rs. 10,00,000, also considered as the population middle income class would help a great deal in achieving the objective of financial inclusion in India. The paper discusses in length about the savings rate, motives of savings & determinants of savings of the households of the sample selected from Nagpur which falls in the above stated income category. The analysis so done by grouping the population in three age groups along with a cross section analysis would help to comment on how the savings & saving behaviour changes with age & income of the household.