WM Market Reports
Population, Total Wealth Of India's UHNW Housesholds Seen Rising Rapidly
The number of ultra high net worth Indian householders, which has risen 16 per cent in the 2013/14 period to reach 117,000, means they control a total of Rs.104 trillion ($1.73 trillion).
The number of ultra high net worth Indian householders, which has risen 16 per cent in the 2013/14 period to reach 117,000, means they control a total of Rs.104 trillion ($1.73 trillion), according to Kotak Wealth Management in a report carried out alongside EY (aka Ernst & Young).
The current population of UHNW individuals in the country has risen from 100,900 in 2012/2013, it said. That population is expected to almost triple to 343,000 with a net worth of Rs.408 trillion by 2018/2019.
“All in all, there has been a positive change in the outlook of the ultra-rich, encouraged largely by the improved economy. This trend is expected to continue and even accelerate in the resurgence of the economy in general and the ultra HNI lifestyle in particular,” the report said.
For the purpose of the study, an UHNW household is considered as such if it has a minimum net worth of Rs.250 million, as measured over 10 years. Such households account for a miniscule fraction of the country's population, highlighting the extremes of wealth despite the ascent of a notable middle class in recent years.
“Based on our analysis and estimate, the number of ultra HNWIs has grown to 117,000 in 2013/14, accounting for about 0.05 per cent of Indian households. This in turn reflects an accumulated net worth of xxxx 104 trillion. While the number of ultra high net worth households grew by 24 per cent over the last four years, the accumulated wealth of these households grew by a whopping 32 per cent year-on-year during this period.
Discretionary and non-discretionary spending takes account of a larger share of people’s budgets, rising to 45 per cent of total income this year from 30 per cent a year before. “The ultra HNWIs seem to have broken away from their sense of cautiousness and are now spending more than last year,” the report said.
The report drew insights from a survey among 150 UHNW individuals across India; interviews with luxury service providers, and secondary research and analysis by EY.
Kotak Wealth Management is the private banking arm of India’s Kotak Mahindra Bank.
