Household Savings to Generate Inflows of $ 9.5 Trillion Into Financial Assets in Next 10 Years: Goldman Sachs

India’s Househld Savings are expected to generate cumulative inflows of around $ 9.5 trillion into financial assets over the next year, according to a report by Goldman SHPORTROT Highlighted that household Financial Savings in India Are Projection to Average Around 13 per cent of GDP over the coming decade.

It said, “India’s Household Financial Savings to Average Around 13 per cent of GDP over the next ten years as a base-case-case-case (vs. average 11.6 per cent of gdp observed in the previous ten years.”

The Rise in Financial Savings will translate into significant inflows across the various instruments, reflecting the gradual shift of households from Physical to Financial to Financial to Financial Assets. Out of the total inflows, goldman Sachs expects a large portion, over $ 4 trillion, to be allocated to long-term savings products products such as insurance, and recrement funds.

Robust inflows into equities and mutual funds are also projectioned, Estimated at Around $ 0.8 Trillion. Bank Deposits, Meanwhile, Are Expected to Attract Around $ 3.5 Trillion. The report noted that this scale of inflows mirrors the patterns seen in other countries as income rises and financial systems mature.

As households Increasing The report identified three key implications of higher household financial Savings in the Country.

Firstly, these inflows will provide a Stable Funding Base for India’s Corporate Capital Expenditure Cycle, without Materially Widing The Current Account Deficit.

Secondly, they are likely to support the long-duration bond markets, helping anchor long-end sovereign bonds yields. This could also prompt the issue of longer tenure Quasi-Salign or Corporate Bonds, thereby facilitating infrastructure finance.

Thirdly, The Rise in Financial Savings is Expected to Expand Retail Participation in Capital Markets Further and Boost the Demand for Professional Wealth Management Services.

The report added that households’ decisions to allocate their savings between financial and physical assets depend on Several Factors Including Includation, Inference, Interest Rates, Risk Preferences, And ACCSS Financial Markets.in Advanced Economies, A Clear Shift Has Been observed Towards Financial Assets, With Househlds Increasing Investing In Pension Funds, Capital Markets, and Insurantal Markets, and Insurantal Markets.

However, in many emerging markets, a significant portion of househld saving continues to flow into physical assets like real estate and gold. This indicates a large potential for further Financialization of Household Savings in India.

Published on August 25, 2025