India's household wealth has experienced a significant surge in 2024, marking one of the fastest growth rates globally. According to the Allianz Global Wealth Report 2025, the financial assets of Indian households rose by 14.5% in 2024, the strongest expansion in eight years. This impressive growth underscores the increasing economic power of India's expanding middle class.
Key Drivers of Wealth Growth
Several factors have contributed to this surge in household wealth. A primary driver has been the increasing investment in securities. Securities investments led the charge, jumping 28.7% in 2024. Insurance and pensions also saw substantial growth, rising by 19.7%. While bank deposits remain the dominant savings vehicle, accounting for 54% of household portfolios, they also grew at a steady 8.7%.
India's Middle Class and Global Wealth Dynamics
India's expanding middle class is playing a crucial role in reshaping global wealth dynamics. The rise of emerging markets in the global middle-wealth segment is significantly influenced by the growth of the Indian middle class. Over the past two decades, India's real per capita financial assets have increased fivefold, positioning it among the most impressive wealth trajectories of any emerging economy.
Purchasing Power and Financial Assets
Adjusted for inflation, India's financial assets grew by 9.4% in 2024, which boosted purchasing power to 40% above pre-pandemic levels. This contrasts sharply with Western Europe, where purchasing power remains 2.4% below 2019 levels. The net financial assets per Indian stood at USD 2,818 per capita in 2024, a 15.6% increase from the previous year. Liabilities also rose, but at a moderate pace of 12.1%, keeping household debt at 41% of GDP.
Global Wealth Growth and India's Position
Globally, household financial assets grew by 8.7% in 2024, reaching USD 315.9 trillion, a new record. While India recorded rapid gains, the United States accounted for half of global financial asset growth in 2024. Over the past decade, US households have generated 47% of worldwide wealth growth, compared to China's 20% and Western Europe's 12%.
Wealth Inequality
Despite the overall growth in household wealth, inequality remains a concern. The richest 10% of the population still hold a significant share of the wealth. In India, wealth concentration has increased, with the richest 10% holding 65% of household wealth in 2024, up from 58% two decades earlier. The average-to-median wealth ratio has also worsened from 2.6 to 3.1. However, it's important to note that India's net financial assets per capita are now 13 times higher than in 2004, surpassing even China's twelvefold increase.
Rise in Millionaires and Billionaires
India has also seen a significant increase in the number of millionaires and billionaires. The number of millionaires in India is expected to surge by over 55% between 2024 and 2029. India's billionaire wealth increased by 42% in 2024, exceeding $905 billion, making India the third-largest concentration of billionaire wealth globally, behind the United States and China. The number of Indian billionaires has more than doubled in the past decade, reaching 185, with their collective wealth increasing by 263% as of April 2024.
Factors Hindering Wealth Growth
While securities ownership is a key driver of household wealth, disparities in portfolio structures mean households benefit unevenly. In North America, 59% of portfolios are in securities, compared to only 13% in India, which limits gains for Indian savers.
Future Outlook
With India's middle class expanding and financial literacy rising, continued strong growth in household wealth is expected. As more investors shift from traditional savings to securities and pensions, this trend is likely to continue. However, wealth inequality and uneven portfolio participation could weigh on inclusive growth.
