India is all set to emerge as the 11th wealthiest country in the world as its personal financial wealth is projected to grow by 13% to $5 trillion by 2022 from the current $3 trillion, according to the latest report by Boston Consulting Group (BCG). It will improve its rank by four places from 2017, leaving behind countries such as Switzerland, Hong Kong, the Netherlands and Taiwan, it added.
According to the report titled “The Global Wealth 2018 – Seizing The Analytics Advantage”, India has grown at a Compounded Annual Growth Rate (CAGR) of 12% since 2012, and it is the only country, apart from China, to have a double digit CAGR for personal wealth.
Presently, the US ranks at first position with an $80 trillion of personal financial wealth as on 2017, which is estimated to grow to $100 trillion by 2022. Besides, China has taken the second spot with a total personal wealth of $ 21 trillion, which is expected to more than double to $43 trillion by 2022. In the coming years, India is expected to constitute the second largest pool of wealth from emerging markets, after China.
India is also the fifth Asian market in the number of affluent, high net-worth, and ultra high net-worth individuals (4,000). It has 322,000 people in affluent category —those with wealth up to $ 1 million, 87,000 people in high net-worth – those between $1 million to $20 million of personal wealth; and 4,000 in ultra high net-worth. people with personal wealth above $20 million.
The amount of investible wealth rose to 67% in 2017 from 64% in 2012 and is estimated to be 80% by 2022. Of India’s private wealth, 6% is currently held offshore, the report added.
In Asia, personal financial wealth rose by 19% to $36.5 trillion, with China holds about 57% of that wealth. Globally, personal financial wealth is expected to growth at a CAGR of about 7% in US dollar terms from 2017 to 2022, the report said, adding that this is if the recent wealth expansion patterns continue over the next few years-with bulks of the growth coming from equity and investment funds.