While India faces headwinds of a prolonged economic slump, the number of Ultra High Net Worth Individuals (UHNWIs) in the country is expected to double in the coming five years.
While India faces headwinds of a prolonged economic slump, the number of Ultra High Net Worth Individuals (UHNWIs) in the country is expected to double in the coming five years. “The growth in India’s Ultra-Wealthy is expected to be on the back of the growth prediction of the economy with GDP touted to reach the 7% mark by 2022. Despite the current slowdown in the economy, global economic pundits see strong long-term economic growth,” according to Knight Frank’s Wealth Report 2020. As of latest data, India had 5,986 UHNWIs in 2019 and they are predicted to grow by a whopping 73% in the next five years. This will almost double the current count to 10,354.
Half of all the ultra high-networth individuals in India have witnessed a jump in their wealth despite concerns over rising geopolitical tensions, slow growth forecasts in 2019. UHNWIs individuals have a net-worth of $30 million and above. “India’s economic advantage is its large and growing consumer base, which helps in general wealth creation. As India enters the 30th year of its liberal economic and trade policy since 1991, the country has also become an important market for global products and services,” Shishir Baijal, Chairman & Managing Director, Knight Frank India said. This, combined with India’s rising focus towards becoming a manufacturing destination for global corporations, will contribute to the rise in private wealth, he added.
Further, Asia is expected to get ahead in the race of creating wealth with it becoming the second-largest wealth centre by 2024, after outshining Europe, according to Knight Frank estimates. “Asia will be the world’s second-largest wealth hub outperforming Europe, with a five-year growth forecast of 44%,” the report said. Even then, the continent will still have only half the number of North America’s UHNWI population. North America’s ultra-rich population is expected to rise by 22% over the same period.