Analysis showing hoe inflation is affecting individuals real return in India. The analysis includes historical figures for past 10 years from 2009 to 2018 related to inflation and savings interest rate (National Saving Certificate- NSC) having sovereign guarantee and tax benefits. Conclusion:  The real rates (adjusted for Inflation) were negative starting from year 2010 to 2013 and in a positive territory 2014 onwards till 2018.  Anyone who could increase their income by 3% y-o-y with increase in expenses @ 13% y-o-y could beat the benchmark index returns.

1. Analysis of effect of inflation on savings India:
Introduction:
Real rates give an accurate, historical picture of how an investment is performing.
Definition:
A real rate of return is the annual percentage return realized on an investment, which is adjusted
for changes in prices due to inflation.
Analysis:
The historical figures for past 10 years from 2009 to 2018 related to inflation and savings interest
rate (National Saving Certificate- NSC) having sovereign guarantee and tax benefits was
considered for analysis.
Base case scenario data:
• Income increase y-o-y - 6%
• Expenses increase y-o-y – 10%
• Starting Expenses – Rs.50
Conclusion:
The real rates (adjusted for Inflation) were negative starting from year 2010 to 2013 and in
a positive territory 2014 onwards till 2018.
Anyone who could increase their income by 3% y-o-y with increase in expenses @ 13% y-
o-y could beat the benchmark index returns.