Global household wealth touched new peaks in 2024, but India stood out as one of the fastest-rising markets, according to the Allianz Global Wealth Report
2025. Covering nearly 60 economies, the report shows that Indian household financial assets expanded by 14.5 per cent last year, the strongest pace in eight years. The findings spotlight how India’s expanding middle class is shaping global wealth dynamics. “India’s expanding middle class continues to reshape global wealth dynamics, contributing significantly to the rise of emerging markets in the global middle wealth segment,” the report noted. Securities Drive Growth, Traditional Deposits Hold Strong Over the past twenty years, India’s per capita financial assets have increased fivefold, placing it among the most dynamic emerging markets. Securities were the biggest driver in 2024, soaring 28.7 per cent, while insurance and pension savings gained 19.7 per cent. Despite this shift, bank deposits remain the backbone of household portfolios, accounting for 54 per cent and growing at a steady 8.7 per cent. In real terms, after accounting for inflation, household assets advanced 9.4 per cent, a jump that pushed purchasing power 40 per cent above pre-pandemic levels. By comparison, Western Europe is still 2.4 per cent below its 2019 benchmark. Net financial assets per Indian climbed 15.6 per cent year-on-year to $2,818, while liabilities grew moderately at 12.1 per cent, keeping debt levels at 41 per cent of GDP. Global Wealth Map: US Still Leads the Pack While India posted rapid gains, the United States remained the single largest driver of wealth growth worldwide. American households generated half of the global financial asset increase in 2024 alone. “Financial asset growth in the US is simply amazing,” said Ludovic Subran, Chief Economist at Allianz. “In 2024 alone, half of the global increase came from American households. Contrary to popular belief, the US has not been losing ground but driving global wealth expansion.” By contrast, Japan and Western Europe fell behind the global average, with limited exposure to securities dampening growth. Inequality Persists Despite Record Gains The report also highlights that global wealth inequality has remained unchanged for two decades, with the richest 10 per cent still owning about 60 per cent of all assets. India’s case is more stark: the share of the top 10 per cent rose from 58 per cent in 2004 to 65 per cent in 2024. The average-to-median wealth ratio also worsened, climbing from 2.6 to 3.1. “You have to work for your money in India,” said Kathrin Stoffel, co-author of the report. “But it’s smarter to let the money work for you, like in the US, where stock market gains drive wealth growth.” Despite these disparities, India’s wealth creation has been extraordinary. Net financial assets per capita are now 13 times higher than in 2004, even outpacing China’s twelvefold rise. Outlook: Rising Middle Class, Growing Securities Participation Looking ahead, Allianz expects India’s middle class and growing financial literacy to drive further gains. The gradual shift from deposits toward securities and pensions could strengthen long-term wealth creation. Globally, however, the report cautions that uneven participation in financial markets and persistent inequality may limit inclusive growth, even as wealth scales new highs.
