The report states that when Chinese GDP was comparable to that of India’s, the country had almost zero billionaires.
Policy initiatives in the real estate and logistics sectors could help India add wealth faster than the present rate and catch up with China, which has four times the number of billionaires than India, according to officials of Hurun Report.
The comparison is stark, while China adds three billionaires per week, India needs a month to add the same to its existing list, Hurun Report India MD and chief researcher Anas Rahman Junaid said.
At 799 in 2020, China has more billionaires than the US and India combined. India is in the third position on the list with 138 billionaires, but can report 170 billionaires if the origin of the wealth creators are taken into consideration.
“For India to hit a GDP of $5 trillion, the number of billion-dollar enterprises that produce new billionaires will have to at least double the current number. The missing pieces in the puzzle are the automobile, logistics and real estate sectors, and we expect exponential wealth creation in these segments in the coming years,” Junaid added.
China has more than 100 entrepreneurs from real estate on the dollar billionaire list of 2020, while India has only 8 individuals from the sector, according to the Hurun report.
“Barrier to entry is very high in the real estate sector despite the effort for transparency and regulation by the government. It is still considered a very negative sector with banks not lending. Real estate has to grow if India needs to hit the target of $5-trillion economy. We all need more quality homes and commercial space. The population is huge and we need more players in the sector,” Junaid said.
The number of listed real estate players are handful in India and there is a huge scope for growth if the initiatives are right, he added. Technology is the primary source of wealth for 12.7 % of the billionaires in the world and it is followed by real estate with 9. 6 %, according to the list.
Junaid also adds that the logistics sector will have to grow at a faster rate if the e-commerce sector has to grow from the present 5% of the total retail sales. Logistics is one sector where India has to produce big companies that are professional and tech-based, he added.
The report states that when Chinese GDP was comparable to that of India’s, the country had almost zero billionaires. In 2020, with a gross domestic product of almost $13 trillion, China has produced 800 known billionaires.
“Some of the autodidactic new wealth creators who have cashed out by exiting their business have now become investors and mentors. In fact, part of the success of Chinese wealth creation has also been attributed to this “giving back” attitude of the successful, young entrepreneurs.” Junaid said.