The Indian savings experience has been marked by varied oscillations since the inception of planning in India. In the period following the independence, India has witnessed a rising trend in the gross domestic saving rate, accompanied by many fluctuations over time though. Also, there have been many major shifts and substitutions within the composition of savings over the six decades. The objective of the present study is to examine the trend behavior and changing composition of savings in India over the planned economic era from 1950 to 2007. The study uses three indicators, namely, the trend growth of saving, the trend growth of saving rate and the average saving rate for an analysis of the trend behavior of savings in the country. On the basis of which, the entire six-decade period is decomposed into six distinct time periods or phases of saving—low-saving phase, increasing-saving phase, high-saving phase, stagnation phase, recovery phase and new-high-saving phase. For studying the changing composition of savings, the average share of saving components has been computed for different saving phases. After an extensive review of Indian savings, the study arrives at certain enlightening findings. There have been very important and major changes in the behavior and composition of savings in India over the analysis period. Household sector is the largest saver with the lion's share in GDS. Private corporate sector saves very low, while the public sector even dissaves. There have been some dramatic and drastic substitutions within the saving composition, with household preferences shifting from the conventionally most sought after saving instruments such as currency, life funds, provident and pension funds to bank deposits, shares and debentures, and other small-saving assets.

Saving decisions are driven by a variety of motives. It is imperative for taking care of current transactions and payments, for making speculative gains, and for precautionary considerations. Besides, savings are essential for building up assets to finance consumption after retirement, for fulfilling the desire of leaving bequests to the subsequent generation, and for acquisition of tangible assets. In addition to these, there is also a long-term development motive attached to savings. Savings are needed for long-term investments and infrastructure development which serve as the base for rapid economic growth.

The Indian savings experience has been marked by varied oscillations since the advent of planning in India. Over the past five-and-a-half decades, India's comparatively high domestic saving rate has followed an upward, but uneven, course, accompanied by waves of low and high savings. Post-independence, private saving has accounted for the lion's share in total domestic saving, whereas the public sector has experienced a gradual decline in savings, since the mid-1980s. In fact, once the government savings started declining, the private corporate savings picked up and surpassed the savings by the former. There appears to be substitution of savings across sectors.

Managerial Economics Journal, Global Distribution System, GDS, Economic Growth, Gross Domestic Saving, GDS, Private Corporate Sector, PCS, Unit Trust of India, UTI, Household Financial Saving, HFS, Gross Domestic Product, GDP, Reserve Bank of India, RBI, Economic Development, Pension Funds, PF.