millionaires in india

India is making noteworthy entry to world’s richest list by scoring the fourth spot in the Asia Pacific Wealth Report 2017 released by Capgemini.

The uber rich are growing considerably large in number in India as they tally grew from mere 84,000 millionaires in 2008 to whopping 2.19 lakh millionaires in 2016. At 4 percent market share of HNI population in APAC, the millionaires in India have made a foray into the list of High Networth Individuals (HNIs), each one having more than $1 million in form of investible assets excluding apartment and collectable assets.

Millionaires: Battle For The Top Spot

At 28.9 lacs millionaires, Japan is the leader in Asia Pacific Wealth. India’s close neighbour, China runs two spots ahead than India with a difference of more than 9 lac millionaires. With the focus on entrepreneurship, Asian firms are able to get a spot in the report.

The report brings bittersweet tidings to India. The growth of the nation has been steadily increasing at a pace that puts even the dragon behind in its speed. The economist peg the upcoming year to bring even more happiness in terms of financial growth.

The world population of these HNWI individuals is increasing at 7.5 percent and wealth at 8.2 percent. With the speedometer set on a high, the wealth track is estimated to exceed $100 trillion by 2025.

Interestingly the 2009 data of the same firm yields that the year 2009 witnessed 51 percent boost in the number of millionaires in India. In 2016 the number of millionaire population in the country grew 9.5% which is although low. But the country’s escalation to 4th position in the APAC region propelled the country to stand out at global index.

millionaires in APAC countries

“We project that Asia-Pacific will surpass US$40 trillion in HNWI wealth by 2025 if Emerging Asia[2] capitalizes on its tremendous potential to grow at 12.9 percent annually – exceeding the 10.2 percent rate of 2016 – and if Mature Asia[3] grows at 6.4 percent or higher, which it accomplished in 2016 at 6.9 percent,” says Anirban Bose, Head of Global Banking and Capital Markets at Capgemini.

Looking at the darker side of the things, these wealthy Indians have assets scattered over the world rather than in the nation itself. Despite the revolutionary initiatives by brand ‘Modi’ and booming investment interest, the trends remain static for the national development.

Wealth Managers Wave The Magic Wand

With the portfolio under control of the wealth managers, the millionaires in APAC, excluding Japan, were able to churn out 33% return on investment during 2016. The factors that cause the growth of the trend include:

  • Transparency
  • Efficiency
  • Innovation

Consider the interesting case of India; In APAC, it secured the 4th spot in HNI population region despite over 2 lac millionaires during 2016, but the total wealth of these HNIs amount to $877 billion, helping India escalate to 3rd position.

Countries like Japan and China fight for being the world’s best and acing the battle with North America. What works for China is the increased focus on single child policy which has created a large number of eligible bachelors while Indian diaspora struggles with its unemployment index.