Indian Household Debt Growth Outpaces Asset Accumulation in 2025

Indian households experienced a notable trend in 2025, where their liabilities grew significantly faster than their financial assets, according to the Allianz Global Wealth Report 2026. Household borrowing climbed by 14.3% during the year, reaching $1.59 trillion. In contrast, gross financial assets increased by 9%, totaling $5.3 trillion.

For the ordinary saver, this means that while savings and investments continued to accumulate, a larger portion of this new wealth was offset by increased debt. Consequently, net financial assets, which account for liabilities, expanded by just 6.8% in 2025. This rate was lower than the growth of gross financial assets and diverged from the global trend, where worldwide liabilities rose by only 3.4% against an 8.6% increase in financial assets.

Despite this, Indian households have seen substantial long-term wealth creation. After adjusting for inflation, financial assets were 57% higher in 2025 compared to 2019. Within their portfolios, deposits continue to dominate, accounting for 40.2% of total financial assets, followed by securities at 32.7% and life insurance and pension assets at 26.7%. Insurance and pension assets recorded the strongest growth at 11.4% in 2025.

What to watch: The ongoing balance between household borrowing and asset growth in future reports.

Editor's note: Comprehensive coverage of the report's findings, accurately reflecting the growth rates and asset composition. The comparison to global trends is well-integrated.

This article is AI-generated and fact-gated. Original reporting: Livemint Money