Indians have 34,600 tonnes of gold. (file photo)
The sharp rise in gold prices has increased the value of gold held in Indian homes to approximately 3.8 trillion dollars i.e. about ₹ 315 lakh crore. This is about 88.8% of the country’s GDP. According to Morgan Stanley’s report released on Friday, this has had a positive impact on the total wealth of households. According to the report, Indian families currently have about 34,600 tonnes of gold.
According to IMF estimates, India is currently the fourth largest economy in the world, India’s GDP is about 4.18 trillion dollars. On the other hand, Pakistan’s GDP is around $375 billion. In this way Indians have gold worth more than 10 times the GDP of Pakistan.
Income increased due to government action
The report said that this wealth effect from gold has increased further because due to reduction in interest rates, the interest burden on loans has reduced and the recent income tax has also increased the disposable income of the people. The government has recently cut GST rates, which is separate from the income tax cuts made earlier this year. The objective of these measures is to increase the income of the people.
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So much rise in gold prices
so far this year gold prices There has been a growth of 61.8% and it has reached a record level of ₹ 1.27 lakh per 10 grams. According to the report, the Reserve Bank of India (RBI) has also purchased about 75 tonnes of gold since 2024, taking its total gold reserves to 880 tonnes. This is about 14% of India’s total foreign exchange reserves.
Stock market also booming
The report also said that the share of stock market in financial savings of households has increased from 8.7% in FY24 to an all-time high of 15.1% in FY25. At the same time, the share of deposits in banks has declined from 40% in FY24 to 35% in FY25, whereas before the pandemic it was around 46%. Morgan Stanley estimates that the share of equity (stock market) in domestic investment will increase further in the coming time, because India’s youth population and investment education are increasing rapidly.