India is expected to have the fastest growth in the number of super-rich people in the world in the next few years, CNBC reports, citing data from London-based consulting company Knight Frank.
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India's super-rich population
Thus, last year alone, the number of the super-rich population of India — people with a net worth of at least $30 million (UHNWI, Ultra high-net-worth individuals) — grew by 6.1%, to 13,263 people. It is expected that by 2028 this number will grow by 50.1%, which will make India the country with the fastest growing number of super-rich in the world.
According to the president of the asset management company Nuvama Private, Alok Saigal, about 30% of investments of Indian UHNWIs are directed to luxury real estate, including overseas projects.
“Offshoring has become quite a significant and hot topic for Indians today. So people are looking to move some of their assets overseas or are looking for a global reach,” Saigal added.
According to Knight Frank’s wealth report, the average UHNW Indian owns more than two homes, and about 12% of India’s UHNWs plan to buy a new home by 2024.
Read: India: A Future Global Leader or Another Financial Bubble
As Chetan Shenoy, CEO of asset management company Anand Rathi Wealth, explained to CNBC, Dubai is now a favorite for wealthy Indians to buy overseas property.
Today, about 20% of Dubai's “offshore property pie” belongs to Indian investors, the channel notes. According to experts interviewed by CNBC, these luxury residential properties can usually be rented out or bought for resale.
Also among Indian UHNWIs, especially among the younger generation, investing in startups is becoming increasingly popular, asset managers told CNBC.
According to Standard Chartered Bank Managing Director Nitin Chengappa, investing in early-stage companies is another way to diversify portfolios. He noted that Indian ultra-wealthy clients generally view investing in startups as a “dynamic wealth creation strategy,” looking to capitalize on high-growth sectors such as fintech, healthcare and technology.
Recap
As Bloomberg previously wrote with reference to forecasts of leading investment banks, India may overtake China in terms of economic growth by 2028.
So, in the base scenario, by the end of this decade, the growth rate of the Indian economy will accelerate to 9%, and China will slow down to 3.5%. In the most pessimistic scenario, which assumes the Indian economy grows by 6.5%, India could overtake China in 2037.
India's GDP is now about $3.7 trillion, while China's is $17.8 trillion. China's economy grew by 5.2% year-on-year in the fourth quarter of 2023.
In the current 2024-2025 financial year, the Reserve Bank of India forecasts a seven percent GDP growth. In the summer of 2023, Goldman Sachs experts assumed that the Indian economy would become the second largest in the world by 2075, overtaking Japan, Germany and the United States and coming very close to China.
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