New Delhi, Jan. 6 -- India's household gold stockpile, which is estimated at around 25,000 tonnes, has quietly emerged as one of the country's most important macroeconomic shock absorbers, offering support to currency stability, financial resilience, and consumption at a time of global uncertainty.

According to IIFL Capital's Outlook 2026, the market value of household gold is now close to 80% of India's GDP, a dramatic rise driven by both long-term accumulation and a sharp surge in gold prices over the past year.

"Consumption has been bumped up from tax cuts and growth should revert to normal (it is usually very difficult to stimulate consumption). Indian households have ~25,000 tons of gold, and the proportion used up as collateral is...