A recent study of over 500 wealthy Indians with a net worth of above Rs 6.5 crore shows that most of the talent is home grown, with only less than a fifth of them opting to go to a foreign university for higher studies.
Do most wealthy Indians go abroad to study? No. A recent study of over 500 wealthy Indians with a net worth of above Rs 6.5 crore shows that most of the talent is home grown, with only less than a fifth of them opting to go to a foreign university for higher studies.
The proportion of wealthy people attending Mumbai University alone was greater than those going to foreign universities. While only 19% of the wealthy Indians surveyed went to foreign universities, 26% of them attended The University of Mumbai.
Indian universities that fostered the wealthy
What’s common among wealthy Indians is their preference for higher education. Most of them are highly educated people who have studied from one of the premier institutes of the country. Most of them hold a master’s degree, with only 2% of them not attending college at all.
It is interesting to note that private universities and colleges do not feature in the list. After Mumbai University, the most preferred school is the Indian Institute of Management, attended by 10% of the wealthy Indians surveyed. University of Delhi was attended by 9% of them for higher education, whereas Savitribai Phule Pune University and Institute of Chartered Accountants of India was chosen by 4%, followed by Indian Institute of Technology, Kanpur at 3%.
Only 19% of this population preferred foreign universities like Harvard to Indian universities, ascertaining the fact that these talents are homegrown. The report said that since they are educated in India, they are likely to invest in properties here.
These universities played an indispensable role in educating the new generation of growth drivers in India who might choose to reinvest in their country, the report observed.
How did they make their wealth?
Most of the wealthy did not inherit their wealth, as the report revealed that their salaries and savings over time accumulated into it. While 60% of them had their savings through earnings / bonuses / dividends turn into capital over time, 50% had made sound personal financial investments. Also, 23% of the wealthy population managed to accumulate wealth by sale of business/es.
Only 18% of those surveyed have their wealth because of the money inherited, while profit from property helped 15% of this population. Only 7% of them made it thanks to large bonuses.
Primary occupation and geographical presence
The report also throws some insights into the primary occupation, the geographical presence and the wealth sources of these individuals. Majority of the wealthy come from business and entrepreneurship background with most of them involved in the manufacturing industry.
Also, Mumbai and Delhi dominate the presence of these exceptionally well doing individuals. However, the dynamic is changing as the creme de la creme of this wealthy population are diversifying to major economic hubs of the country, the report said.
- By Prachi Gupta