Saving has been considered as one of the determinants of growth from the classical days leading the underdeveloped countries to the path of development. For the individuals and households, savings provide a cushion of security against future contingencies, whereas for the nation, savings provide the funds needed/required in the developmental efforts. To achieve higher rate of growth with relative price stability for the nation, the government should take steps to increase the marginal propensity to save by introducing appropriate incentives and policies. Also, in an era of international financial integration, for macroeconomic stability, higher domestic savings is necessary. Aggregate savings in any economy depends on a number of interdependent variables. The savings from the household sector of India contributes a lion's share to the total savings of the nation and has a major influence on the Indian economy. Saving rate of the household sector of both the rural and urban sectors should be stepped up to boost the savings and thus the economy