New Delhi: A major global report has revealed that Indian households are among the world’s fastest-growing in terms of wealth, but this headline figure masks a more complex reality of deep-seated inequality, a rapidly expanding debt burden, and a per-capita wealth level that remains among the lowest globally.
The Allianz Global Wealth Report 2025 shows that the net financial wealth of Indian households surged by an impressive 15.6% in 2024, reaching €3,400 billion. This growth rate is among the highest of the world’s major economies and underscores the rapid expansion of its financial sector. However, this growth starts from a low base, as India’s net wealth per capita remains one of the lowest in the study at just €2,400.
The Allure of the Absolute
In absolute terms, India’s wealth story appears impressive. Its gross financial assets grew by 14.5% to €4,921 billion. This has led to celebratory headlines, positioning India as a leading engine of global wealth creation.
However, a comparison with global heavyweights provides crucial context. While India’s wealth is growing rapidly, its total stock remains a fraction of the world’s leaders.
Where does India Stand in Comparison?
| Country | Total Net Financial Wealth (2024) |
| United States | €105,789 bn |
| China | €28,338 bn |
| Germany | €7,265 bn |
| India | €3,400 bn |
US is the undisputed leader. Its wealth is 31 times that of India.
China’s household wealth is 8.3 times that of India, despite a similar population.
Per-Capita Paradox: Wealthy Nation, Poor People?
The most critical lens through which to view this data is per-capita wealth. Here, India’s position is starkly different.
The net financial wealth of the average Indian stands at €2,400 (Less than ₹2.5 lakh). This places India at 48th out of the 57 countries analysed, ranking between Serbia and SriLanka.
For comparison:
- The global average is €37,050, over 15 times higher than India’s.
- China’s per-capita wealth is €19,870, nearly eight times that of India.
- Even a smaller economy like South Africa (€11,190) has a per-capita wealth figure over 4.5 times higher.
“This data confirms a classic emerging market story: impressive growth in aggregate terms that struggles to move the needle on a per-person basis,” said an economist who reviewed the report.
The Growth League: Upstarts Outpace the Giant
While India’s growth is strong, the report shows that several smaller economies are accelerating even faster, highlighting the hyper-growth phase many developing nations are experiencing.
| Country | Net Wealth Growth (2024) |
| Türkiye | +44.7% |
| Pakistan | +27.4% |
| Kazakhstan | +23.7% |
| India | +15.6% |
This illustrates that India’s growth, while impressive, is not an outlier. Many emerging markets are on a similar trajectory, often from a starting point of even greater poverty.
The Cracks in the Foundation
Beneath the surface of these growth figures, the Allianz report flags two significant concerns for India.
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The Debt-fueled Engine
Household liabilities (debt) in India grew by 12.1% in 2024, almost keeping pace with asset growth. The report explicitly states that in emerging economies like India, “debt has grown faster than assets on average.” This means a portion of the celebrated wealth creation is being funded by borrowing, a potential risk to financial stability if not managed carefully.
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The Inequality “Side Effect”
Perhaps the most damning finding is on wealth distribution. The report names India as a country where wealth concentration has “increased significantly,” calling it a “side effect of rapid growth.” This suggests that the benefits of economic expansion are being disproportionately captured by the wealthiest, a trend that could undermine social cohesion and sustainable development.
Dual Picture of India
The Allianz report paints a dual picture of India. It is undeniably a powerhouse of new wealth creation, its sheer scale making it a key player in the global economy. Yet, the journey to becoming a truly prosperous nation is far from complete. The challenges of lifting the average citizen’s wealth, managing household debt, and ensuring that growth is broadly shared remain the critical, and as yet unfulfilled, chapters in India’s wealth story.
The numbers show a nation sprinting, but one that started a marathon far behind the leading pack. The true test will be not just the speed of the run, but its sustainability and inclusivity.
