An Analysis of Savings and Investment among the IT Employees in Bengaluru, Karnataka

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Ashwin Cletus


I.T. Employees should start thinking and understanding the importance of money, savings and its investment aspect to avoid critical situations at any stage of their lives. They need to develop skills to plan for their financial needs. The financial position of a country largely depends on the inflation rate, foreign exchange rate, per capita Gross domestic product, etc. Savings from middle-class households also plays a vital role in improving the financial position of a country as it leads to more investments and capital formation in the economy. Savings and investments are directly proportionate to each other. Savings form the backbone for investments viz., higher savings lead to higher investments and vice versa following the general perception about the macroeconomic balance in national accounts. An economy can have different forms of savings of which household financial savings generally constitute the largest share in aggregate domestic savings. Other forms of savings comprise physical savings by households, savings by the private corporate sector and the public sector and foreign savings. (Himanshu Joshi Director Monetary Policy Department Reserve Bank of India, 2017).

Bengaluru is among the most significant technology clusters in the world. It is among the world's top 10 fastest growing cities. It is the headquarters for 80% of global I.T. companies and accounts for almost 34% of India's total I.T. exports. Out of the 871 multi-national companies, which have their (R&D) centers in India, 700 are in Bengaluru. It has 1.5 million employees in the I.T. and IT-enabled sectors, out of 4 million employees across the country. - (National Association of Software and Service Companies, 2014)

This study is a detailed analysis of the income and savings pattern of I.T employees in Bengaluru. This paper seeks to understand the salient factors that influence savings across this demographic.

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