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This paper examines the impact of India's GDP on its household consumption expenditures and savings. It clarifies that GDP and household consumption expenditure of India are highly correlated with each other and also with savings GDP is correlated. Apart from showing the interrelationship between them, this study also focuses on building a linear relationship between GDP as an independent variable and household consumption expenditures as dependent variable and savings also as dependent variable. The simple correlation between each of them clarifies us that as our GDP tends to rise, the household consumption and savings capability also move up, giving Indian Economy a better shape to move forward for growth in future.

Keywords

GDP, Household Consumption, Savings, Economic Development.
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