India Becomes 7th Largest Wealth Market; 2.36 Lakh HNIs Collectively Own Whopping $1.5 Trillion

New World Wealth, which claims to be a global wealth intelligence and market research company has revealed that India is now unstoppable in creating wealth. On a global scale, India has been ranked as 7th largest wealth market as total number of high net worth individuals in the country increased by 55% between 2007 and 2015.

As per findings from the report titled ‘India 2016 Wealth’, there are 2.36 lakh high net worth Indians by the end of 2015, who collectively command $1.5 trillion. This means that on an average, a high net worth Indian owns $6.3 million or Rs 42 crore (with current USD to INR conversion of Rs 67.03)

The report claimed that majority of countries in the world has witnessed negative growth of wealth, especially since 2007, but India has surpassed all expectations by performing “very well”. In 2007, there were only 1.52 lakh high net worth Indians, which has now increased to 2.36 lakh by the end of 2015.

In terms of wealth, 1.52 lakh Indians owned only $0.9 trillion which has now jumped by 67% to reach $1.5 trillion.

Some highlights from the report:

• With $5.2 trillion of wealth held by Indians, we are world’s 7th richest country after USA, China, Japan, Germany, UK and France
• An average Indian has net assets worth $4200 (Rs 2.81 lakh)
• $140 billion in India is tied up with venture capitalists, financial institutions and families which are into wealth creation. High net worth Indians are part of this legacy.

The Future Of Wealth Creation

New World Wealth is very optimistic when it comes to the future of wealth creation in the country. As per their estimates, total number of high net worth Indians will rise by 135% to reach 5.54 lakh by 2025. By this measure, India will become world’s 5th largest wealth creator in the next 10 years.

The report has mentioned some of the reasons which is fuelling India’s incredible growth of wealth creation, and these are: strong real estate demand and local construction, rising financial services market, IT industry as a whole, business process outsourcing and healthcare sectors; robust economic growth and increasing entrepreneurship.

Good governance along with emphasis on increasing the banking coverage are also mentioned as reasons for India’s good performance in wealth creation.

Areas Where India Is Lacking

The report says that Govt. regulations in some areas are over-burdening and it is creating unwanted obstacles in wealth creation. They also said, “Corruption is also a major problem – businesses often need to pay regular bribes to government officials in order to operate successfully.”

Besides, as per the findings of the report, it takes 1420 days to enforce a contract in India, which is one of the worst globally.

However, in the end, it was mentioned that ever since PM Modi took over, conditions have improved and Govt. is now in a help-mode to help millionaires became billionaires.

In May this year, New World Wealth had released a report which declared India as the top wealth creators globally, as an average Indian was able to increase his wealth by 400% during last 10 years.

However, at the same time, wealth drain is also a reality as 4000 millionaires have left India since 2015; and in the last 14 years, 61,000 high net worth Indians decided to relocate abroad.