Indian households now collectively hold an estimated $3.8 trillion (₹317 lakh crore) worth of gold — nearly 89% of India’s GDP, according to a recent report by Morgan Stanley. The report highlights how the recent surge in gold prices has significantly boosted household wealth across the country.
Economists Upasana Chachra and Bani Gambhir from Morgan Stanley noted that the massive gold holdings, accumulated over generations, have created a “positive wealth effect on the household balance sheet”, especially amid the ongoing record rally in precious metals.
Gold has long been intertwined with Indian culture, religion, and social customs. Families buy and store gold not just as a form of savings or financial security, but also as a symbol of prosperity in rituals, weddings, and festivals. The metal is often gifted across generations, serving both sentimental and economic value.
Analysts said the sharp rise in gold prices this year has enhanced the notional value of household assets, further reinforcing India’s position as one of the world’s largest private holders of gold.
India’s gold ownership is deeply rooted in tradition — blending emotional significance with economic prudence — and the latest valuation underscores how this ancient asset continues to shape modern household wealth in the country.
