A report mentioned that India is home to the fourth largest population of millionaires in Asia Pacific region. India has 2,19,000 ultra-rich individuals with a combined wealth of US $877 billion. Based on the 2017 Asia Pacific Wealth Report, by Capgemini, India stands at the fourth position with its contribution of 4 per cent in terms of individual market share in HNWI population growth.
Individuals with a high net worth are defined as those having investible assets of more than 1 million USD excluding primary residence, consumables, collectibles and consumer durables. By the end of 2016, there were 28, 91, 000 millionaires in Japan while China was second with 11, 29, 000 HNWIs and Australia stood third with 2, 55, 000.
Between 2015 and 2016, India’s high net worth population saw a surge of 9.5 per cent and it out beat the average annual growth rate of 7.4 per cent of APAC. This was ahead of China and Japan which showed a growth rate of 9.1 per cent and 6.3 per cent, respectively, during the same period. In terms of the wealth of high net worth individuals, India saw a double digit growth of 10 per cent for 2015-2016 as compared to the annual average growth of 8.2 per cent. After a wealth expansion of only 1.6 per cent in 2015, India posted a double digit wealth growth of 10 per cent in 2016. This was due to a rebound in the real estate and equity markets. The report also mentioned that the GDP forecasts for 2017 and 2018 are expected to drive further economic growth.
The report also noted that investor sentiment in India has remained cautiously confident with the unannounced demonetization initiative by the Prime Minister Narendra Modi in 2016. The country faced challenges such as unemployment and ongoing use of tax grabs on foreign nationals. 41 percent of Indian high net worth individual’s financial assets are held outside the home market as recorded during July-September. In terms of the geographic spread of the same, Indians are largely holding their assets in Singapore which accounts for 22.2 per cent, followed by Dubai which has 14.4 per cent and London which accounts for 13.4 per cent.
The report mentioned Asia Pacific continued to dominate high net worth individual population and wealth and is targeted to surpass USD 40 trillion wealth by 2025. Asia Pacific is a global leader in HNWI population and wealth. The pace has slowed down in 2016 at 8.2 per cent as compared to 9.9 per cent in 2015. The report from Capgemini tracks HNWIs in the Asia Pacific region based on the global and economic conditions and wealth which drive change in the industry.