India May Become World’s 4th Largest Wealth Market By 2027: Report
By 2027, India may become the fourth largest wealth market in the world, estimates India Wealth Report by Johannesburg-based market research firm New World Wealth and Research & Markets, surpassing countries such as the United Kingdom and Germany.
How much wealth do Indians own?
According to the report, “total wealth held by all the individuals living in India amounts to $8.2 trillion (as of Dec 2017) from $3.2 trillion a decade ago". This includes the wealth of all people living in the country, including the middle class, the low-income and the high-net-worth individuals (HNWIs) altogether. Around $3.9 trillion (or 48 per cent) of this total is held by HNWIs. While this shows how much of the wealth is held by the HNWIs, it is also an account of the rise in personal income of Indians.
It is also important to note that the number of HNWIs in the country has increased from 1,24,000 in 2007 to 3,30,000 in 2017 – a major reason why India is one of the top markets today. India also has 20,730 multimillionaires with wealth estimated to at $10 million and above and 119 billionaires.
India’s financial capital Mumbai is the prime residence for the billionaires and is estimated to be the wealthiest city with 28 billionaires and a wealth of $950 billion as of 2017. Delhi and Bengaluru follow at $554 billion and $410 billion, respectively. Kolkata, Hyderabad, Pune, Chennai and Gurgaon are among other top cities with respect to private wealth.
Among cities that emerging in terms of private wealth are Kochi, Chandigarh, Surat, Ahmedabad, Vishakhapatnam, Goa, Jaipur and Vadodara.
Where are they investing?
Business is the top interest with 25 per cent being used and 23 per cent being reserved for this. Real estate comprises of 22 per cent of their wealth while equities amount to 21 per cent. Alternatives take up nine per cent. About 19 per cent worth of wealth was held in foreign countries majorly in cash (the United States), equities or properties in London, New York, Singapore, Miami, Dubai and Sydney.