India's households miss global shift to financial assets: UBS
New Delhi, July 12
Global personal wealth rose at its fastest pace in years in 2025, driven by strong financial markets and gains in non-financial assets, but India remains an outlier with only about one-fourth of household wealth held in financial assets, underscoring the country's continued dependence on property and other physical assets for wealth creation, according to the UBS Global Wealth Report 2026.
The report said global personal wealth increased by 10.8 per cent in US dollar terms in 2025, more than double the pace recorded in each of the previous two years. "The world became significantly wealthier again in 2025, and at a rapid pace. Personal wealth rose by over 10%, lifted by strong markets and rising non-financial assets," it said.
However, UBS cautioned that the gains were not evenly shared. "This growth was fueled by strong financial markets and a notable increase in non-financial assets... However, the gains were uneven: while average wealth rose notably, median wealth actually declined in most markets, highlighting a growing divide between the wealthiest and the broader population," the report said.
Against this backdrop, India stood out not for the size of its financial wealth, but for its composition. According to the report, financial assets account for just 25.8 per cent of gross wealth in India, among the lowest shares in the 56 markets covered by the study. By comparison, financial assets make up over 80 per cent of household wealth in Sweden, Israel and Taiwan, nearly 79 per cent in the United States and around 52 per cent in mainland China.
"On the opposite end of the scale we find a value below 20% in Turkiye, below 26% in India, just above 31% in Spain and close to 44% in Germany," UBS said, highlighting the stark differences in how household wealth is held across countries.
The report also showed Indian households carry relatively low debt compared with many developed economies. Debt accounts for 8.2 per cent of gross wealth in India, compared with more than 20 per cent in Switzerland and the United Kingdom, 23.4 per cent in Brazil and around 11 per cent in the United States, Germany and mainland China.
UBS said there are "vast variations in the level of debt" across countries, with India among markets where household leverage remains comparatively modest.
The findings suggest that while global wealth creation in 2025 received a strong boost from financial markets, Indian household wealth continues to be anchored largely in non-financial assets such as real estate and other physical assets, making its wealth profile markedly different from that of many developed economies.
— ANI
Reader Comments
Low debt is good, but is it a sign of financial conservatism or lack of access? Many Indians simply don't have the credit history or formal banking to take on loans for productive investments. The story is about concentration in physical assets, lack of financial literacy, and a regulatory environment that still makes stock markets feel risky for the average person.
My father bought land in 1995 for ₹5 lakhs. Worth ₹1.2 crores today. Did his mutual funds give that return? No way. Indians have seen real estate beat inflation and generate serious wealth over decades. Why would we shift to something new when the old model works so well? The report misses this historical context completely.
As someone working in an Indian fintech startup, I see this shifting slowly. Young urban professionals are putting 30-40% of savings into equities and mutual funds. The issue is with older generations and in smaller towns. Give it 15-20 years and India's composition will look closer to China's 52% financial assets. The infrastructure is improving fast.
I'm surprised debt is only 8.2% of gross wealth in India. In the US, people mortgage their homes to invest in stocks and that's how wealth grows faster. Indian caution with debt might be keeping the wealth creation lower overall. Also, property in India is often under-valued on paper for tax reasons, so actual wealth might be higher than reported.
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