India’s hidden $5 trillion gold engine
image for illustrative purpose
New Delhi: India’s household gold holdings have surpassed the combined reserves of the world’s top 10 central banks and emerged as a significant but underutilised economic asset, a report has said.
As per the industry body Assocham analysis, the sharp rise in gold prices during 2024-25 and early 2026 has pushed the value of gold held by Indian households to an estimated $5 trillion, making it one of the largest pools of private wealth globally.
Highlighting the macroeconomic potential of this stockpile, the report noted that channelising even 2 per cent of household gold into financial assets annually could significantly boost economic growth.
If such a trend continues, nearly 40 per cent of total gold holdings could move into financial instruments by 2047, adding an estimated $7.5 trillion to India’s GDP through multiplier effects, it said.
With India’s GDP projected at around $34 trillion by 2047, this additional contribution could take the economy beyond $40 trillion.
The report also underlined that much of this gold remains outside the formal financial system and called for measures to channelise it into productive uses such as gold monetisation schemes, collateralised lending, and gold-linked financial instruments.
