Gross Domestic Saving ( GDS ) and Gross Domestic Investment ( GDI ) are the parameters to study the health of the economy.
Gross Domestic Saving = Gross Domestic Product – The Final Consumption
Investment = Saving + Net capital flow from abroad ( FDI + FII + Remittance – Outflow ) + Borrowings.
Gross Domestic Investment is also called the Gross Capital Formation. In a developing economy, investment is generally more than savings.
Gross Domestic Savings is estimated by dividing the economy into the private corporate sector, the public sector and the household sector. Household
sector accounts for about 75 % of GDS followed by private corporate sector which contributes about 20% and public sector accounts for 5%.
The Gross Domestic Saving and the Gross Capital Formation are worked out as a percentage of GDP at market price and current prices.