India holds 34,600 tonnes of gold, 3.1x the value of current equity holding
- IBEF
- October 13, 2025
India held a cumulative 34,600 tonnes of gold as of June 2025, valued at nearly Rs. 3,35,76,735 crore (US$ 3.785 trillion) at the prevailing price of Rs. 3,59,809.79 (US$ 4,056) per ounce, according to a Morgan Stanley note. This represents approximately 88.8% of India’s gross domestic product (GDP) and is about 3.1 times the current equity holdings of Indian households, valued at Rs. 1,05,12,135 crore (US$ 1.185 trillion). India remains one of the world’s largest gold markets, driven by cultural affinity, investment demand, and its role as a store of value, hedge against inflation, and safe haven asset. Data from the World Gold Council (WGC) shows that India accounted for nearly 26% of global gold demand as of June 2025 on a four-quarter trailing basis, second only to China’s 28% share. Jewellery continues to dominate demand, representing roughly two-thirds of consumption, while retail investment in bars and coins has risen from 23.9% in June 2020 to 32% in June 2025.
In volume terms, annual gold consumption in India has remained between 750 and 840 tonnes since 2021, below its peak of 1,145 tonnes in June 2011. However, rising domestic gold prices pushed the value of gold consumption to an all-time high of Rs. 6,03,228 crore (US$ 68 billion) on a four-quarter trailing basis in June 2025, compared with Rs. 3,90,324 crore (US$ 44 billion) in June 2023. Analysts note that household financial diversification is increasing, with deposits falling to 35% of household savings in FY25 from 40% in FY24, while equities rose to 15.1% from 8.7% over the same period. Head of India Equity Research at Morgan Stanley, Mr. Ridham Desai, expects equity allocation to accelerate further, supported by favourable demographics, investor education, low prior equity ownership, retirement fund reforms, and an improved regulatory environment.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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