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Financial confidence is rising among working Indians. But confidence does not always mean resilience. Slow income growth, high living costs, and reliance on salaries make many people vulnerable to financial shocks.
This India financial resilience report looks at financial wellbeing in India and Indian savings and investment trends. Grant Thornton Bharat looked at how people view their money. They studied how people balance spending, saving, protection, and planning for the future. The report draws on 528 responses from across India, collected between November 2025 and February 2026.
The survey mainly reflects a young, urban and salaried workforce:
Nearly 62% of respondents say their yearly income grows by 4-12%. At the same time, 62% believe pay rises will not be enough to keep up with future inflation. That worry is even stronger among respondents aged 25-34, where 70% think income growth may not offset future price rises.
Perceived pay gaps add to the strain. Although nearly half the respondents see themselves as highly skilled, 82% say their pay does not match their skills. This view is similar across those who rate themselves as mid-level, highly skilled or expert.
Income sources are still narrow. Salary is the main source for 91% of respondents, while only 29% earn from investments. A large share of women, about 69%, have no second income source.
The findings also show active money management. About 38% of people always make a monthly budget. Around 95% feel confident or somewhat confident managing monthly expenses without a credit card. Most respondents spend up to half their income on rent or EMIs, utilities and household costs.
Family duties remain a key part of money planning:
About 16% of people say they spend nothing on insurance, medical bills, or parental care. Among them, 91% earn less than INR 15 lakh a year. Among respondents unable to save, 97% also fall in this income band. These findings show how cost pressure affects financial protection and saving ability.
Life and health insurance is fairly common among respondents. Around 61% report life cover of INR 50 lakh to INR 1 crore, while 59% have health cover of INR 25 lakh to INR 50 lakh. Term life insurance is the top choice, selected by 80% of respondents.
Still, 21% have life cover below INR 20 lakh. That raises questions about how strong their financial protection is, especially since most respondents have one or more dependants.
Most respondents know why emergency savings matter. Around 84% have fully or partly funded emergency reserves. But 83% say these savings would last less than one year if their income stopped.
This short runway reflects fixed household costs, moderate income growth and dependence on one income source. A longer break in income could increase stress or lead to borrowing.
Retirement readiness in India is still weak, especially among younger respondents. Around 83% say they are not ready for retirement. Among those under 34, the share rises to 92%. This shows that long-term planning remains limited even when people save or invest.
Mutual funds are the most common investment product, held by 82% of respondents, while 23% invest directly in equities. Around 61% say their portfolios are mostly high risk, with exposure to stocks, crypto and mutual funds. Investment choices remain mostly domestic, with 73% saying global policy changes do not greatly affect their decisions.
Artificial intelligence is also beginning to shape investment choices. Around 69% sometimes use AI tools for market views or ideas, although only 3% use AI-based platforms often. At work, 51% expect AI to change how they work and think they may need to adapt or reskill. Another 35% believe it will open new opportunities.
Around 63% of respondents describe themselves as confident and financially stable. Yet low-income mix, short emergency-fund runways, protection gaps and weak retirement readiness point to clear weak spots.
The report makes an important point. Financial confidence reflects how people view their current situation. Resilience depends on their ability to cope with long periods of uncertainty. Closing that gap will need more focus on readiness, protection and long-term financial stability.
Overall, the report adds to the wider conversation on financial wellbeing in India, insurance and financial preparedness, Indian savings and investment trends, and retirement readiness in India.
Many people feel stable today, but resilience means lasting through shocks. This India financial resilience report shows that small emergency savings, salary dependence, weak cover, and low retirement readiness mean confidence does not always equal strength.
The biggest weak spots are a narrow income mix, fear that income growth will lag inflation, heavy reliance on salary, small emergency savings, and weak retirement readiness. The report also points to cost pressure, especially for people earning less than INR 15 lakh a year. They are more likely to report no spending on insurance, medical care, or parental care, and they often find it harder to save.
This weak insurance and financial preparedness weighs on financial wellbeing in India.
Most respondents see the need for emergency funds, and 84% have fully or partly funded reserves. Even so, 83% say their savings would last less than one year if their income stopped. Many households would still face risk during a long income break.
Retirement readiness India is weak across the group. Around 83% say they are not ready for retirement, and the share rises to 92% among those under 34. This suggests that even people who save, budget, or invest may still give too little attention to long-term security.
Respondents are active in market-linked investments, with mutual funds held by 82% and direct equities by 23%. Many portfolios still lean toward high risk, with exposure to stocks, crypto, and mutual funds.
These Indian savings and investment trends show a strong tilt toward risk. The financial independence survey India also suggests that AI is becoming a useful tool for ideas and market views. About 69% use it sometimes, but only 3% use AI platforms actively.
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