28,000 New Indian millionaire households in 2011


Boston Consulting Group (BCG) released a report titled "Global Wealth 2012: Battle to regain strength" which outlined the deterioration of wealth in the hands of millionaires in the world. However in developing countries like India, it was a different picture as 28,000 new millionaire households emerged in 2011.

bcg report

US had the highest number of millionaire households in the world as 51 lakh households tipped above a million dollars in private wealth in 2011. China had 14 lakh such households while India had 1.62 lakh millionaire households as compared to 1.34 lakh in 2010.

While US still retains number one spot worldwide, there has actually been a 2.5% decline in the number of millionaire households in America. Similar trends have been witnessed in other developed countries including major European nations and Japan.

millionaire household

There were a separate breed of households that the BCG report also looked at, called the Ultra High Net Worth (UHNW) households. These represented households with more than $100 million or 555 crore rupees in private wealth.

In 2011 USA had 2,928 UHNW households as compared to 2,989 in 2010. Mature nations like UK, Germany and Australia remained stable while there were 37 new additions to UHNW in India marking an increase of 15%. The same number in China increased by 110 to 648 households.

ultra millionaire household

Despite the shrinking wealth in developed countries, global private wealth levels increased marginally by 1.9% to $122.8 trillion. This growth is driven by developing nations like India and China. In fact, BCG pegs the growth in private wealth in India at a stunning rate of 19% over the coming 4 years. In China, the same increase will be 15%.

Like every story this one too has two sides to the coin. The flip side of increase in the number of ultra rich households is that they may splurge on homes and apartments, driving up property prices. However the positive side is just too hard to ignore and in fact, overshadows the flip side.

Despite the fact that falling stock prices and weak investor sentiment led to a loss of more than Rs. 20,00,000 crore in investor wealth in 2011, a fundamentally strong economy backed by a growth in GDP led to increase in private wealth.

Good or bad, these numbers convincingly point to the fact that growth in global private wealth is because of developing nations like India. The BCG report said…

"Global growth in private wealth is clearly being driven by rapidly developing economies in the ‘new world,’ not by the ‘old world’ of traditional, mature ones"

  1. Altaf Rahman says

    Correct me if I am wrong.
    The definition of Millionaire household does not mean their wealth to be above a Million dollars.
    Its their income per year which should be more than a million dollars per year.
    In countries where taxes are extremely painful, like in India, there is a tendency to supress income declarations to save on taxes. Incomes from rentals of real estates, lending businesses, etc are not adequestly represented in the figures. In Western countries, where the laws cover every aspect, the room for tampering with figures is less and so the millionaire household figures may be near to reality compared to India and other developing / third world countries.
    Just my two paisa :)

    1. mayank agarwal says

      not really, definition of millionaires is owning assets of at least that much not yearly income . On the second point,yes you are right but I am not sure if these surveys take the hiding factor into account or not.

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