India’s household gold holdings top $5 trillion, flags Kotak; warns of capital shift from financial savings

Surging gold prices have pushed the estimated value of gold held by Indian households beyond $5 trillion as of January 2026, equivalent to roughly 125% of the country’s GDP, according to a report by Kotak Institutional Equities in Times of India.

In rupee terms, this translates to about ₹445 lakh crore at end-January, marginally lower than India’s total market capitalisation of around ₹460 lakh crore, as per BSE data.



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The report noted that continued household buying of gold reflects a shift away from financial savings such as bank deposits towards physical assets. “This represents a conversion of financial savings into physical assets, akin to an export of household capital,” it said.

Gold now accounts for nearly 65% of Indian households’ non-property wealth, and is estimated to be about 175% of the combined value of their deposits and equity holdings.

Kotak estimates that the value of gold holdings has more than quadrupled over the past five years—from ₹109 lakh crore in March 2019 to ₹445 lakh crore in January 2026, driven largely by imports.

Flagging macroeconomic implications, the report said sustained gold imports to meet household demand could exert pressure on India’s external balances. “Other external sector flows remaining constant, this implies a drawdown of RBI’s forex reserves, reflected in lower net foreign currency assets on its balance sheet,” the report said.