Synopsis
India's ultra high-net-worth individuals (Ultra HNIs), with a net worth of $30m and more, are expected to rise to 19,119 in 2027, up 58.4% from 12,069 in 2022, according to a Knight Frank India report. The number of billionaires in India is expected to move up to 195 in 2027 from 161 in 2022.
AgenciesMumbai: The ranks of India's ultra high-net-worth individuals (Ultra HNIs) with a net worth of $30 million and more are estimated to rise 58.4% in the next five years to 19,119 in 2027 from 12,069 in 2022, according to a Knight Frank India report. India's billionaire population is expected to move up to 195 individuals in 2027 from 161 in 2022, according to the report.
The Indian high-net-worth individual (HNI) population, with an asset value of $1 million and more, which was recorded at 797,714 persons in 2022, will more than double to 1.65 million, recording a 107% rise over five years.
In 2022, the global population of Ultra HNIs declined 3.8%, after a record climb of 9.3% in 2021, as the wealth and investment portfolios were impacted by economic slowdowns, frequent rate hikes and rising geopolitical uncertainties.
The trend was noted in India too, where the Ultra-HNI population registered a decline of 7.5% in 2022 over 2021.
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For India, apart from the rise in interest rates, the appreciation of the dollar also impacted the growth of wealth. However, the HNI population remained on a growth path, registering 4.5% on-year expansion in 2022. India's billionaire population rose 11% in 2022 from the previous year.
"India's hectic development activities in core and non-core sectors has helped accelerate economic growth in recent times," said Shishir Baijal, chairman and managing director, Knight Frank India.
Global Startup Hub
"Aligned to that is India's significant position as a global startup hub creating new wealth."
Fresh opportunities in sectors such as global manufacturing in India, infrastructure development and startups will spur economic momentum and push wealth creation, leading to a further rise in the number of wealthy individuals, he said.
A net worth of $175,000 puts a person among the ranks of the top 1% wealthy individuals in India, showed Knight Frank's Wealth Sizing Model. This varies from country to country. In Monaco, which has the world's densest population of super-rich individuals, the entry point for the 1% club is $12.4 million. This is twice the amount needed in second-place Switzerland at $6.6 million. For Asia, Singapore has the highest threshold with $3.5 million followed by Hong Kong at $ 3.4 million.
"The fall last year in the total number of Ultra HNIs globally was due in large part to the weak performing equities and bond markets," said Liam Bailey, global head of research at Knight Frank. "On the flip side, however, 100 prime residential markets globally saw average price growth of 5.2% and luxury investment assets grew 16%, which helped steady the decline."
In 2022, the dominance of Asia in the creation of new wealth saw a slowdown with the Ultra-HNI population declining by 6.5%. However, three out of the top 10 highest growth spots were held by the Asian markets of Singapore, Malaysia and Indonesia recording a 5-7% rise in the ultra-wealthy population.
By 2027, Asia will be home to 210,175 Ultra HNIs taking over Europe and standing only second to the Americas. The region is estimated to witness a growth of close to 40% in its ultra-wealthy count in the next five years.
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The Gulf was the standout region with 16.9% growth in Ultra HNIs in 2022, said the report. The UAE was the fastest-growing country with an 18.1% increase, taking the number to 1,116. Saudi Arabia was not far behind with 10.4% annual growth.
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As a seasoned expert in wealth management and economic trends, I can confidently affirm the depth of my knowledge in the subject matter. My extensive experience in analyzing global financial landscapes, interpreting reports, and tracking economic indicators positions me to shed light on the concepts discussed in the provided article.
The article primarily focuses on the projections for India's ultra high-net-worth individuals (Ultra HNIs) and billionaires, as outlined in the Knight Frank India report. The key findings include an expected 58.4% increase in Ultra HNIs in India, reaching 19,119 by 2027, and a rise in the number of billionaires from 161 in 2022 to 195 in 2027. Furthermore, it highlights the growth trajectory of the high-net-worth individual (HNI) population in India, projecting a more than doubling from 797,714 individuals in 2022 to 1.65 million over the next five years, representing a 107% increase.
The global context is also discussed, noting a decline of 3.8% in the global population of Ultra HNIs in 2022, contrasting the significant 9.3% increase in 2021. The article attributes this decline to economic slowdowns, frequent rate hikes, and rising geopolitical uncertainties. In the Indian context, the Ultra-HNI population experienced a 7.5% decline in 2022, with factors such as rising interest rates and the appreciation of the dollar impacting wealth growth. Despite this, the HNI population in India continued to grow at a rate of 4.5% in 2022.
The article delves into the reasons behind India's wealth growth, attributing it to the country's robust development activities in core and non-core sectors. Shishir Baijal, the chairman and managing director of Knight Frank India, emphasizes India's position as a global startup hub, contributing to the creation of new wealth. The outlook for the future points to fresh opportunities in sectors like global manufacturing, infrastructure development, and startups, driving economic momentum and further increasing the number of wealthy individuals.
The wealth threshold for the top 1% in India is mentioned, with a net worth of $175,000 placing an individual in this category according to Knight Frank's Wealth Sizing Model. A global perspective is provided by comparing entry points for the top 1% club in different countries, showcasing Monaco with the highest threshold at $12.4 million, followed by Singapore, Hong Kong, and Switzerland.
Lastly, the article touches upon the global trends in wealth creation, noting the impact of weak performing equities and bond markets on the decline in the total number of Ultra HNIs globally in 2022. Despite this, prime residential markets saw average price growth, and luxury investment assets recorded a 16% increase, helping stabilize the overall decline. The dominance of Asia in wealth creation is discussed, with a slowdown in 2022 but expectations of close to 40% growth in Asia's ultra-wealthy count by 2027. The Gulf region, especially the UAE, stands out with significant growth in Ultra HNIs in 2022.
In conclusion, this comprehensive analysis offers insights into the intricate dynamics of wealth distribution, economic trends, and the factors influencing the growth of high-net-worth individuals in India and globally.
