India has been creating a billionaire a month since 2010. According to a World Economic Forum report, India ranks fourth in the list of countries with the most number of billionaires. Only the United States of America (565), China (319) and Germany (114) have more number of billionaires than India. The Forbes billionaire list has 101 Indians, up from 84 last year. India had 12 billionaires in 2005. According to Fakhri Ahmadov, managing director at Ahmadoff & Company, a UK-based wealth advisory firm, “It’s record number historically (and) it means every 33 days brought a new Indian billionaire to the list last year.”
The World Economic Forum report goes on to state that self-made billionaires have driven much of this growth. A report by Ahmadoff & Company estimates that 70% of the Indian billionaires are self-made. Forbes quoted Fakhri Ahmadoff as saying,“We have always imagined Indian private capital to be in the hands of ‘old wealth’ rather than self-made entrepreneurs, however our research explains that self-made entrepreneurs account for around 65% of the wealth of billionaires and it has been stabilized at this ratio since 2010.”
Interestingly, last year, the Billionaires’ Wealth to GDP ratio stood at 11% in India, up from 7.5% in 2005 as per a Ahmadoff and Company report. As of 2016, the Billionaires’ Wealth to GDP ratio in the world stood at 8.6%. The average age of billionaires has risen from 57 to 64 in India, while average age of billionaires around the world has fallen from 65 in 2005 to 63 in 2016. As at the end of last year, there were 1,810 billionaires around the world, up from 678 in 2005.
The World Economic Forum report states that India is in middle of a start-up boom. It is the third-largest tech startup located globally. As per the report, it’s likely to have around 2,100 tech-startups by 2020.
Two things have been major contributors to India’s new wealth: fast economic growth in consumer retail goods and redistribution of wealth along billionaire family lines, often creating new billionaires, especially in rupees. The share of Indian billionaires in the global billionaires club touched a whopping 5%, up from 1% in 1996, as per the report.