The latest Forbes list of the world?s richest people is as much a tribute to the spirit of Indian enterprise as to the power of markets and the sweeping changes being witnessed in the Indian economy. Today, most agree that Indian multi-billionaires have earned their rightful place in this list by the sheer dint of their entrepreneurial spirit and also because of the power of an Indian economy revelling in the spirit of freedom. However, Forbes? latest list does have a few aspects which merit special mention. For one, its four richest Indians?with a combined $180 billion under their belt?are richer than the 40 richest Chinese. Evidence, perhaps, of things to come, as India rushes headlong to catch up with China?s economic growth rate. Also, these Indian multi-billionaires together form the wealthiest such group in Asia. This is also a sign of the enormous clout that Indian corporations now wield in the region and, indeed, in much of the world economy.
In direct terms of wealth calculation, the ratings are a function of market capitalisation, and the Indian equity market?which is also known to play havoc with the mighty?has seen a sustained bull run that has made the grand pie more than 50% larger over the last year alone. Of course, this also means that as our multi-billionaires pile up the billions (as wealth on paper), other investors at large in the companies they own or control see the value of their stock portfolios swell accordingly. It is a wealth creation process open to all. While the list?s usual big names, like LN Mittal, the Ambani brothers, Kumar Mangalam Birla, Sunil Mittal and Azim Premji, continue to be cause for cheer, one reason why India Inc can uncork the champagne with even more gusto this year is the entry of new names from new sectors. Take, for instance, Kushal Pal Singh, whose realty firm DLF Ltd was listed only in July, and who is now the world?s richest real estate developer. Or Gautam Adani, whose infrastructure play has got him a place as the richest new entrant to the list. Or names like Shashi and Ravi Ruia of the Essar Group whose fortunes have been on a comeback trail ever since the current economic upswing got underway. The entry of these names is a sign that the Indian growth story is getting diversified at the top. It now needs a more diversified base of retail investors as well.
