India’s household wealth has witnessed a massive surge, touching an estimated $3.8 trillion, largely driven by skyrocketing gold prices and a growing shift towards equities. According to a Morgan Stanley report, the total household wealth now accounts for nearly 89% of India’s GDP, reflecting the strong financial position of Indian families in 2025.
Gold Prices Soar 61.8% in a Year
The standout factor behind this rise is the exceptional 61.8% increase in gold prices, which have reached a record ₹1.27 lakh per 10 grams this year. Gold continues to remain the most trusted form of savings in Indian households, and the ongoing economic uncertainty has only reinforced its role as a safe-haven asset.
The Reserve Bank of India (RBI) has also strengthened its position by purchasing an additional 75 tonnes of gold since 2024, bringing its total holdings to 880 tonnes, roughly 14% of the nation’s foreign exchange reserves.
Tax Cuts and Monetary Easing Fuel Disposable Income
The report highlights that recent income-tax and GST cuts have increased disposable income for millions of households. Simultaneously, lower interest rates due to monetary easing have reduced borrowing costs, encouraging spending and investment in financial assets.
Shift Toward Equities Signals a New Financial Mindset
For the first time, equities have emerged as a major component of household savings, now forming 15.1% of financial investments, up from 8.7% in FY24 and just 4% before the pandemic. This marks a significant behavioral shift among Indian investors—especially the younger demographic—who are increasingly embracing long-term wealth creation through the stock market.
In contrast, traditional bank deposits have declined to 35% of household savings, compared to 40% a year ago and 46% pre-pandemic, signaling diversification away from low-yield instruments.
Outlook: Stronger and Smarter Household Portfolios
Morgan Stanley expects this transformation to accelerate further as financial literacy, digital access, and investment awareness expand across India. With gold and equities both performing strongly, Indian households are entering a new era of balanced and resilient wealth creation.
