How Did Indian Households' Financial Assets Increase by 6.6% to ₹9.9 Lakh Crore?
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Synopsis
In a positive shift for Indian households, financial assets have climbed to ₹9.9 lakh crore in FY25, marking a recovery from previous lows. This indicates a growing confidence in the economy and a shift towards equities, a trend that could reshape future financial landscapes.
Key Takeaways
- Net financial assets of households rose to ₹9.9 lakh crore, or 6 percent of GDP.
- Household liabilities decreased to ₹15.7 lakh crore, or 4.7 percent of GDP.
- Significant growth in equities, now 15.1 percent of assets.
- Bank deposits' share fell to 35.2 percent.
- Overall credit growth slowed to 12 percent.
New Delhi, Nov 25 (NationPress) The total net financial assets of households surged to ₹9.9 lakh crore, representing 6 percent of GDP for FY25, as reported by Finance Minister Nirmala Sitharaman this Tuesday. This marks an increase from 5.3 percent in the previous fiscal year (FY24).
In the same context, household financial liabilities have experienced a significant decline, falling to ₹15.7 lakh crore or 4.7 percent of GDP in FY25, compared to the previous year, as indicated in an update from FM Sitharaman on X.
According to the latest data from the RBI, "Net financial assets have rebounded to ₹9.9 lakh crore, equating to 6 percent of GDP in FY25, a notable recovery from 5.3 percent of GDP in FY24."
This marks a dramatic reversal from just two years prior when household savings dipped to 4.9 percent of GDP in FY23—the lowest level since the early 1970s. This rebound indicates that households are rebuilding their financial buffers more swiftly than anticipated as income levels recover post-pandemic.
This trend is also evident in household debt management, with financial liabilities contracting to ₹15.7 lakh crore (4.7 percent of GDP) in FY25, down from ₹18.8 lakh crore (6.2 percent of GDP) just a quarter earlier.
This moderation in liabilities aligns with a general slowdown in credit growth, which has decreased to 12 percent in FY25 from 16 percent in FY24, partly due to stricter regulations on unsecured and retail loans.
Despite an increase in gold-backed loans—a sign of a preference for quick, collateralized borrowing—the growth rate may be slowing due to increased regulatory scrutiny of this segment.
Notably, the data highlights a rising interest in equities, with market-linked instruments now comprising an unprecedented 15.1 percent of household financial assets in FY25, a sharp increase from 8.7 percent in FY24 and 7.3 percent in FY23.
This substantial growth underscores households' growing confidence in capital markets, driven by robust equity performance and the potential for higher returns. In contrast, the share of bank deposits has diminished to 35.2 percent in FY25, as individuals increasingly transition their funds away from traditional, low-yielding savings options.
Point of View
I believe that the rise in household financial assets signals a critical recovery phase for the Indian economy. This growth reflects not only a response to post-pandemic financial strategies but also an evolving investment landscape where households are increasingly leaning towards equities. It’s vital that we continue to monitor these trends, as they reveal the financial health and future potential of our nation.
NationPress
25/11/2025
Frequently Asked Questions
What are household financial assets?
Household financial assets refer to the total monetary resources owned by households, including savings, investments in stocks, bonds, and other financial instruments.
How did the financial assets of households change from FY24 to FY25?
The net financial assets of households increased from 5.3 percent of GDP in FY24 to 6 percent in FY25, reaching ₹9.9 lakh crore.
What does the decline in household liabilities indicate?
The reduction in household liabilities suggests that families are managing their debts more effectively, which could lead to greater financial stability.
Why is the increase in equity investments significant?
The rise in equity investments indicates growing confidence among households in the stock market and a shift away from traditional savings methods.
What factors contributed to the change in household financial assets?
The increase in household financial assets can be attributed to a recovering economy, post-pandemic income revival, and a shift towards higher-yielding investments.
