India’s ultra-wealthy individuals set to double by 2024: Report

Our Bureau Chennai | Updated on March 06, 2020 Published on March 05, 2020

This image is used for representational purpose only

With growth forecast at 73 per cent, country also tops ‘fastest-growing’ list

The number of ultra-wealthy individuals in India is set to double over the next five years, according to a report by real-estate consultancy firm Knight Frank.

According to the Wealth Report 2020, the number of ultra-high net-worth individuals (UHNWI) in India will grow 73 per cent in the next five years. As a result, the number of ultra-wealthy individuals will rise to 10,354 by 2024 from 5,986 in 2019.

UHNWIs include individuals with a wealth of more than $30 million, including their primary home.

Despite rising geopolitical tensions, slow growth forecasts and uncertainty in 2019, 51 per cent of ultra-wealthy Indians saw an increase in their fortune, the wealth report said.

The GDP factor

India currently ranks 12th in global ultra-wealthy population, which is dominated by the US with 2,40,575 individuals, followed by China (61,587) and Germany (23,078). India is ahead of South Korea, Saudi Arabia and Brazil in terms of number of ultra-wealthy individuals.

With a 73 per cent growth forecast, India tops the list of fastest growing countries, followed by Egypt (66 per cent), Vietnam (64 per cent) and China (58 per cent).

The report, however, added that the growth in the number of ultra-wealthy individuals in India is based on GDP growth, which is expected to reach the 7 per cent-mark by 2022.

Knight Frank also predicted that by 2024, Asia, with a five-year growth forecast of 44 per cent, will be the world’s second-largest wealth hub, outperforming Europe. However, even after such a steep rise, it will reach only half the size of North America's UNHNWI population, which is predicted to increase by 22 per cent over the same period.

“It's exciting to see how wealth is developing across Asia and, with the number of ultra-wealthy in India, Vietnam, China and Malaysia outpacing many other markets over the next five years, it will be interesting to see how this impacts the global property market,” said Liam Bailey, Global Head of Research at Knight Frank over a video conferencing call.

Preference for equities, bonds

While equities and bonds remain preferred investment assets of India’s ultra-wealthy, their Asian counterparts prefer investing in properties, the Attitudes survey, conducted as part of the wealth report, said.

As many as 83 per cent of Indian ultra-wealthy individuals are planning to increase or maintain their allocation to equities, followed by bonds (77 per cent) and property (51 per cent). In 2019, investment allocation in equity by Indian ultra-wealthy increased 72 per cent.

Knight Frank’s Bailey said that four out of five global UHNWIs intend to alter their investment strategies this year due to the change in global economic conditions.

Accumulation of wealth is not the sole target for these billionaires. According to the report, 68 per cent of the ultra-rich globally hinted at increasing their philanthropic activities; the Indian average is 67 per cent.

Also, 24 per cent of India’s ultra-wealthy want to buy a new home in 2020 against the 21 per cent global average. For Indian billionaires, the UK is the favourite destination to buy property, followed by Dubai, the US and Australia.

Published on March 05, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.