Indian households hold nearly $5 trillion in gold, more than top 10 central banks combined: ASSOCHAM

Indian households have accumulated more gold over the years than the combined reserves of the world’s top 10 central banks, according to a report by ASSOCHAM, underscoring the vast scale of privately held wealth in the country.

The industry body estimates that Indian households collectively hold nearly $5 trillion worth of gold, making it one of the largest pools of household financial assets globally.

This far exceeds India’s officially recognised gold reserves, which stand at about 880 tonnes, as per data from the World Gold Council.

S. No.	Country	Gold Reserves (Tonnes)
1	United States	8,133.5
2	Germany	3,350.3
3	Italy	2,451.8
4	France	2,437.0
5	Russia	2,311.0
6	China	2,308.5
7	Switzerland	1,039.9
8	India	880.3
9	Japan	846.0
10	Netherlands	612.5

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Source:

World Gold Council

Highlighting the macroeconomic potential of this stock, report said that even a gradual channelisation of physical gold into financial assets could deliver a significant boost to economic growth.

It noted that if just 2% of household gold holdings are mobilised annually, nearly 40% of the total stock could be brought into the financial system by 2047. Such a shift could add an estimated $7.5 trillion to India’s GDP through multiplier effects, taking the projected size of the economy from around $34 trillion to $41.5 trillion by 2047.

The report highlights that the value of gold held by Indian households exceeds the annual GDP of almost all economies in the world, except the top two (the US and China).

The report stressed that much of India’s gold remains locked in physical form, limiting its productive use. Bringing this idle wealth into formal channels through instruments such as gold monetisation schemes, gold-backed lending, and savings products could support sectors including manufacturing, infrastructure, and agriculture.

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In recent years, gold loans have emerged as a key avenue for financialisation, with lending against gold and jewellery witnessing steady growth.

However, ASSOCHAM noted that the overall potential remains largely untapped, even as rising gold prices have further increased the value of household holdings.

Calling for policy support and greater financial innovation, the industry body said enhancing the economic productivity of gold could unlock substantial long-term gains for the Indian economy.

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