India aims to become the world’s third-largest economy with a GDP target of about 5 trillion US dollars. Along with policy reforms and industrial growth, household financial behavior plays an important role because household consumption forms a major share of India’s GDP. Decisions about saving, spending, borrowing, and investing at the family level directly affect national economic growth. This study uses data from the NSS 77th Round – All India Debt and Investment Survey (2019), conducted by the National Sample Survey Office, to examine how financial literacy and spending habits influence capital formation. The research follows three stages: building a 2019 financial baseline, comparing with recent trends, and projecting outcomes up to 2030. Statistical methods used include descriptive statistics, Gini coefficient and Lorenz curve, chi-square tests, logistic regression, K-Means clustering, PCA, and LDA. The results show how asset allocation, debt patterns, and financial inclusion affect productive investment and long-term growth. The study suggests that improving financial literacy and expanding formal financial access can help households contribute more effectively to India’s economic growth goals.