Indian households are putting a far bigger share of their savings into equities and mutual funds than a decade ago, the government’s chief economic adviser said. Speaking at an NPS Diwas event, V. Anantha Nageswaran said the share of equities and mutual funds in household financial savings rose from 2 percent in 2011-12 to 15 percent in 2024-25.

Bank deposits fell from 58 percent to 35 percent over the same period. Monthly systematic investment plan flows grew from under 4,000 crore rupees to more than 28,000 crore rupees. Nageswaran said deeper capital markets were channelling savings into productive investment, but warned that pension coverage remained thin.

The share of pensions in household savings was flat, and India’s pension assets stood at about 17 percent of GDP, far below the 80 percent or more seen in OECD countries. He called for simpler products and wider use of digital rails like UPI to bring more households into formal retirement saving.