Produced by: Mohsin Shaikh
Indian households now hold an estimated $3.8 trillion worth of gold, according to a Morgan Stanley report, highlighting the country’s enduring love for the precious metal.
This gold holding accounts for almost 89% of India’s GDP, emphasizing how deeply gold is embedded in household wealth.
Gold prices have soared 61.8% this year, reaching a record Rs 1.27 lakh per 10 grams, boosting the value of existing household holdings.
Recent GST and income-tax cuts have increased disposable income, further supporting wealth accumulation and investment in gold.
The Reserve Bank of India has increased gold reserves by 75 tonnes since 2024, bringing total holdings to 880 tonnes, about 14% of India’s forex reserves.
Household financial savings are gradually shifting, with equities rising to 15.1% in FY25 from 8.7% in FY24, reflecting growing investment awareness.
Conversely, deposits now make up 35% of savings, down from 40% in FY24 and 46% pre-pandemic, signaling diversification in household investments.
Morgan Stanley predicts that equities will play an even bigger role in household savings, driven by a younger population and enhanced investment literacy.
The combination of soaring gold values, rising equity adoption, and supportive policies has significantly enhanced the net wealth of Indian households.