In case you've missed all the tell-tale signs around you, the Richie Rich club in India is getting richer by the day. In May, the AfrAsia Bank Global Wealth Migration Review 2018 predicted that India's wealth would grow by a whopping 200 per cent between 2017 and 2027, the fastest rate among the wealthiest nations.
But a new study shows that the country's 4,470 ultra-high net worth individuals (UHNWIs) are already richer than their global counterparts, holding an average wealth of Rs 865 crore against the average equivalent of Rs 780 crore for the typical global UHNWI, The Economic Times reported.
The study by IIFL Wealth Management and Wealth-X further claimed that the number of wealthy Indians and their affluence expected to rise by an astonishing 87% over the next five years. The country reportedly is currently home to 284,140 wealthy individuals with a combined fortune of Rs 95 lakh crore. By 2021, the number of wealthy people will multiply to 5,29,940 with an aggregate wealth of Rs 188 lakh crore.
"India's high net worth (HNW) population growth of 40% over the past five years has eclipsed that of its rivals in economies elsewhere in the world, placing India in a league of its own" the daily quoted Karan Bhagat, CEO of IIFL Wealth Management, as saying. "By comparison, the global HNW population and its wealth grew by 3.2% and 4.2%, respectively over the same period."
Here are some more interesting findings from the IIFL Wealth Management Wealth Index 2018 report:
- India's UHNWIs are slightly younger -- the average age is 58-years-old -- than their global counterparts (62 years).
- India ranked fourth globally for the number of new wealthy individuals joining the ranks of the rich, following the US, Japan and China.
- Most of India's UHNWIs inherited their wealth -- only 45% of desi billionaires are self-made compared to 66% of their global counterparts.
- The desi UHNWIs hold a smaller proportion of their wealth in liquid assets -- with one third invested in their primary businesses -- compared with their peers overseas.
According to the study, the impact of the quantum leap in wealth generation in India will be magnified around the world as the super rich choose to increasingly invest overseas or to be educated abroad. The daily added that their luxury spending power is set to explode from London and New York to Paris and Dubai.