Here's an interesting idea to increase the savings rate of Indians

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Households have to lock up a lot of their money in storing water and power for their use. If we fixed these basic problems, the urban savings rate would shoot up. A professor from a European University was amused, nay fascinated, to see the sump at my house and was very curious to learn all about it. I explained that we stored water in it. He asked why? "To pump it up," I said. He asked: "Then what happens?" I answered: "We pump it down." But suddenly the idea looked bizarre even to me. It seemed even more bizarre when I explained that the motor pump was kept in a locked cage. For a person long used to running water all the time, the idea of storing water was obviously amusing. But this European colleague was truly shocked when he saw a huge power generator in my garage and an inverter in my kitchen. He began to compute the amount of money spent by individual households who needed to store water, generate electricity, and then store even that electricity in the inverter. His calculations showed that at half the investment the local government could have provided the same water and power to every household. Read more at: https://www.firstpost.com/business/money/heres-an-interesting-idea-to-increase-the-savings-rate-of-indians-1968495.html

Publication Date

22-4-2014

Publication Title

First Post

Publisher

Network 18 media conglomerate

Keywords

Economic development, Economic growth, Social security, Hoseholds, Financial management, Financial system

Source Link URL

https://www.firstpost.com/business/money/heres-an-interesting-idea-to-increase-the-savings-rate-of-indians-1968495.html

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