How Gen Z could turn India into economic superpower with $3.4 trillion gold treasure | Gravitas

Could India's next big economic breakthrough already be sitting inside millions of Indian homes? A new report suggests the country's vast household gold holdings could become a major source of economic growth if more of this wealth enters the formal financial system.

According to the World Gold Council's Swarnim Udaan 2047 report, Indian households hold more than 31,000 tonnes of gold worth nearly $3.4 trillion. This makes it one of the world's largest privately held gold reserves. However, much of this wealth remains locked away as jewellery, family heirlooms and wedding savings instead of contributing to the wider economy.

The report identifies Generation Z as a potential force behind a major shift in how Indians use gold. People born between 1997 and 2012 are increasingly viewing gold not just as jewellery or a traditional store of wealth, but also as a financial asset.

This changing approach is driving interest in digital gold, gold-backed financial products and other technology-enabled investment options. These products can make gold more liquid, flexible and easier to access as an investment.

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The World Gold Council expects Gen Z to account for nearly $2 trillion in consumer spending by 2035. The report also says younger Indians are changing how they buy gold by combining online research with offline purchases while demanding greater transparency, better designs, personalisation and responsible sourcing.

The report suggests that India's traditional attachment to gold, combined with Gen Z's digital-first approach to investing, could unlock a large pool of household wealth. If this shift continues, India's vast gold reserves could move from largely idle wealth to a more productive asset that supports long-term economic growth.