The correct answer is B. 20 to 25 percent.
The average rate of domestic savings (gross) for the Indian economy is currently estimated to be in the range of 20 to 25 percent. This means that for every $100 of income that Indians earn, they save an average of $20 to $25. This is a relatively high savings rate, and it is one of the reasons why India has been able to grow its economy at a rapid pace in recent years.
There are a number of reasons why Indians save so much money. One reason is that the Indian government offers a number of incentives for saving, such as tax breaks and interest rates on savings accounts. Another reason is that many Indians live in rural areas, where there are few opportunities to invest their money. As a result, they often choose to save their money rather than spend it.
India’s high savings rate has a number of benefits. It helps to finance the country’s investment needs, which in turn helps to boost economic growth. It also helps to reduce the country’s reliance on foreign debt. However, India’s high savings rate also has some drawbacks. It can lead to a shortage of consumer goods and services, as well as to inflation.
Overall, India’s high savings rate is a positive development for the country. It helps to finance economic growth and reduce the country’s reliance on foreign debt. However, it is important to manage the country’s savings rate carefully to avoid any negative consequences.
Here is a brief explanation of each option:
- Option A: 15 to 20 percent. This is a relatively low savings rate. It is possible that India’s savings rate was in this range in the past, but it is unlikely that it is still in this range today.
- Option B: 20 to 25 percent. This is a relatively high savings rate. It is the most likely option for India’s current savings rate.
- Option C: 25 to 30 percent. This is a very high savings rate. It is possible that India’s savings rate was in this range in the past, but it is unlikely that it is still in this range today.
- Option D: 30 to 35 percent. This is an extremely high savings rate. It is very unlikely that India’s savings rate is in this range today.