Mumbai, India – – In a concerted push to deepen India’s financial markets and redirect domestic savings, Reliance Industries Chairman Mukesh Ambani and BlackRock CEO Larry Fink are urging Indian investors to favor equity markets over traditional investments in gold, and silver. The call to action, made during a fireside chat on , comes as the Indian stock market experiences a slight downturn and gold prices remain volatile.
Ambani characterized a significant portion of Indian savings as “unproductive,” pointing to bullion imports – approximately $60 billion in gold and $10-15 billion in silver – as capital that could be more effectively deployed for economic growth. “If we can convince Indian savers to invest in capital markets, these returns will likely compound,” Ambani stated, emphasizing the potential for wealth creation through participation in the country’s expanding economy.
The initiative is particularly relevant given the composition of Indian household assets. As of fiscal year 2025, approximately 59% of savings were held in gold and real estate, a figure that has decreased from 66% in fiscal year 2015, indicating a gradual shift towards financialization. However, Ambani and Fink believe there is substantial room for further movement.
The partnership between Reliance Industries and BlackRock, formalized through the launch of Jio BlackRock Asset Management , is a key component of this strategy. As of , Jio BlackRock’s equity funds had amassed 31.98 billion rupees ($353 million) in assets under management. This venture aims to provide Indian investors with accessible and “safe, transparent and consistent” investment options.
Fink echoed Ambani’s sentiment, stating that the next 20-25 years represent an “era of India.” He drew parallels to the U.S. Experience, suggesting that those who invested in the growth of the American economy through capital markets have fared better than those who solely relied on traditional savings accounts. He further predicted significant growth in the Indian equity market, anticipating it will “double and triple and quadruple” in the coming decades, a trajectory he doesn’t foresee for gold.
India’s economic outlook supports this bullish view. The International Monetary Fund (IMF) projects India to be the world’s fastest-growing major economy in , with a growth rate of 6.4%, significantly outpacing forecasts for Germany, the U.K., and Japan. This robust growth potential underscores the argument for directing savings towards productive investments.
The shift towards equity investments is already gaining momentum. Systematic Investment Plans (SIPs), which allow investors to contribute small amounts regularly, have tripled to 2.89 trillion rupees ($31.9 billion) in fiscal year 2025 from 2021, according to data from the Association of Mutual Funds in India. This indicates a growing appetite for mutual funds among Indian investors.
Despite recent underperformance – the Nifty 50 is down nearly 2% so far this year – Indian equities have demonstrated strong long-term returns. Over the past five years, the MSCI India Index has delivered nearly twice the returns of the broader MSCI Emerging Markets Index. However, over the last year, the MSCI India Index’s dollar return of 2.61% has lagged behind the 43.67% return of the MSCI Emerging Markets Index.
While foreign investors have been net sellers of Indian equities for over a year, the increasing participation of domestic investors has helped to stabilize the market. Bain & Company estimates that retail investor-driven assets in the Indian mutual fund industry will grow to 300 trillion rupees ($3.3 trillion) by 2035, up from 45 trillion rupees in fiscal year 2025, highlighting the immense potential for further expansion.
The combined message from Ambani and Fink represents a strategic effort to unlock the potential of Indian savings and channel them into the country’s economic engine. The success of this initiative will likely depend on continued efforts to educate investors, build trust in the equity markets, and offer accessible investment products like those provided by Jio BlackRock.
