Indians' net worth & debt, both at record highs: Study

Indian households' net worth has soared to a record 157% of GDP in Q1 FY25, largely driven by substantial investments in equity and mutual funds. However, household debt has concurrently reached an unprecedented 42% of GDP. This dual rise highlights both increased financial assets and growing liabilities among Indian households.

Representative photo MUMBAI: Indian households are currently experiencing a financial paradox : their net worth is at an all-time high, but so is their debt. The net worth of Indian households has reached a record 157% of GDP in the first quarter of FY25, surpassing the previous high of 152.9% recorded in 4QFY21.

This comes after a decline to a post-pandemic low of 138.7% of GDP in Q4FY23. The household financial net worth surged to 150.

7% of GDP in Q4FY24 and continued to rise in Q1FY25. Prior to the pandemic, it was approximately 123% of GDP. This surge in wealth is primarily attributed to a significant increase in financial assets , particularly investments in equity and mutual funds.

India’s equity market cap expanded to 146% of GDP in Q1 FY25 from around 105% a year ago. However, there is a concerning rise in household debt , which now stands at a record 42% of GDP according to a report by Motilal Oswal . The increase in debt is from 35% of GDP immediately before the pre-pandemic.

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