India Held 34,600 Tonnes of Gold a 3.1x the Value of its Current Equity Holdings

As of June 2025, India held 34,600 tonnes of gold, valued at around $3,785 billion at the prevailing price of $4,056 per ounce, according to Morgan Stanley. This amount is nearly 88.8% of India’s GDP and about 3.1 times the value of Indian households’ current equity holdings, which are estimated at $1,185 billion.

Gold in Indian Households

Gold continues to play an important role in Indian households. Its cultural significance, investment demand, and use as a hedge against inflation make it a widely held asset. Both jewellery and investment instruments like bars and coins contribute to its popularity.

The World Gold Council reports that India accounted for nearly 26% of global gold demand on a four-quarter trailing basis as of June 2025, compared with a 5-year average of 23%. China remained the largest consumer with a 28% share.

Patterns of Consumption

Jewellery still makes up about two-thirds of India’s gold demand, but investment in bars and coins has grown from 23.9% in June 2020 to 32% in June 2025. In terms of volume, annual gold consumption has stayed between 750 and 840 tonnes since 2021, below the peak of 1,145 tonnes in June 2011.

In value terms, gold spending reached a record $68 billion on a four-quarter trailing basis in June 2025, up from $44 billion in June 2023. The earlier peak of $55 billion was recorded in June 2013, supported by higher volumes.

Household Financial Savings

Household financial savings are gradually shifting toward market-linked products. Deposits’ share has fallen to 35% in FY25, down from 40% in FY24 and 46% pre-pandemic, while equities have increased to 15.1% in FY25, up from 8.7% in FY24 and around 4% pre-pandemic.

Morgan Stanley expects equity ownership to grow further, supported by factors such as demographic trends, investor education, policy changes, and improved regulatory measures.

Read More: Global Gold Production 2025: China and Russia Tops Gold Production!

Conclusion

India’s gold holdings remain significant both in size and value. While gold continues to dominate household wealth, financial diversification is gradually increasing, with equity investments gaining a larger share of savings.

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