India’s high net worth individuals (HNWI) population grew by 2% from 1.98 lakh in 2014 to 2 lakh in 2015, shows the World Wealth Report 2016 published by Capgemini. India stood at 12th position in the HNWI population index.
HNWIs are defined as those having investible assets of US$ 1 million or more, excluding primary residence, collectibles, consumables and consumable durables.
India features third among the countries which will be the biggest drivers of HNWI wealth growth in the coming decade, with India’s HNWI wealth estimated to grow by 13.40% by 2025. China and United States rank first and second respectively in this list. HNWI wealth in China and United States is expected to increase by 27% and 22%, respectively, by 2025.
“Over the next decade, Asia-Pacific is expected to change the face of global HNWI wealth. Already in the past ten years (2006 to 2015), the region has doubled its HNWI population and wealth, boosting population by 99% to 5.1 million and wealth by more than 100% to US$ 17.4 trillion,” states the report.
The report states that if projected growth rates hold, Asia-Pacific’s share of HNWI wealth and population may become larger than that of Europe, Latin America and the Middle East and Africa combined, representing two-fifths of the world’s HNWI wealth and cementing the regions status as a wealth leader.
With 44.58 lakh HNIs, United States has the highest number of HNWI population, followed by Japan (27.20 lakh), Germany (11.99 lakh) and China (10.34 lakh).
In terms of growth, China recorded the highest growth in HNWI population, which increased from 8.90 lakh in 2014 to 10.34 lakh in 2015. Japan saw the second highest growth. Its HNWI population jumped from 24.52 lakh to 27.20 lakh during the same period. On the other hand, countries like Singapore, Mexico, Brazil, Russia and Canada saw a decline in HNWI population.
At the industry level, while a variety of industries are expected to drive HNWI wealth growth in the coming decade, wealth managers expect the top three sectors to contribute to this growth to be financial services (36%), technology including Fintech (31%) and healthcare (30%).
