The Hindu Business Line : HNIs in India up 23%: Study

Increasing Wealth: (left) Mr Pradeep Dokania, Managing Director and Head of Global Private Client, DSP Merrill and Mr R. Vaidyanath, Head Consulting Service-Capital Markets Group, Capgemini at a press conference held in Mumbai on Thursday. —

Our Bureau

Mumbai, Sept 25 The number of High Networth Individuals (HNIs), with investible surplus of more than $1 million, in India has gone up by 23 per cent to 1.23 lakh as of December 2007, according to a DSP Merrill Lynch and Capgemini report.

The combined wealth of the HNIs has increased to $440 billion during this period. The average networth of the Indian HNIs has gone up to $3.6 million, while the global average is $4 million.

The factors that have led to the surge in the number of HNIs are the “rapid economic expansion, increased foreign investment, increase in the savings rates and gains on the country’s stock markets”, stated the report. HNIs in India have invested 36 per cent of their assets to equities. The number of Ultra-High Networth Individuals (individuals with an investible surplus exceeding $30 million) in the country at the end of 2007 was 1,081. Their combined wealth jumped to $116 million.

Worldwide phenomenon

“Our analysis shows that in 2007, India’s HNI population experienced the highest growth worldwide in 2007, expanding it by 22.7 per cent”, said Mr Salil Parekh, Chief Executive Officer, Capgemini India. According to the report, the number of HNIs in the Asia Pacific region has increased to 2.8 million during this period, which is an increase of 8.7 per cent compared to the global growth rate of six per cent.

“Despite dislocations in developed markets, the number of HNIs here grew at a faster rate than the global average. Domestic demand and Asia’s appetite for commodities continue to drive wealth accumulation in India”, said Mr Pradeep Dokania, Head of Global Wealth Management for DSP Merrill Lynch.

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