Listen to this article
The population of HNIs in India has crossed the 3-lakh mark for the first time as the country recorded a 10.5% growth in HNI population in 2021, according to Capgemini's World Wealth Report.
India outperformed most top nations in HNI population growth. In fact, India's 10.5% growth rate was second highest among the top 25 nations with highest HNI population. Only US added HNIs at a faster pace than India at 13.5%.
"In India, HNI population and wealth grew by 10.5% and 11.6%, respectively. Thanks to liquidity support from central bank, supportive domestic policies, and vaccination drives, wealth expanded. India's Nifty50 and BSE Sensex indices were up 24% and 22%, respectively," the report said.
As per the report, individuals with $1 million (Rs. 7.8 crore at present rate) investable assets are HNIs. The amount does not include the value of primary residence, collectibles, consumables, and consumer durables.
Overall, 2021 was a period of tremendous wealth accumulation around the world, the report said, adding that the wealth creation was driven by a rally in stock markets across the world.
Top 25 nations in HNI population:
The US, Japan, Germany, and China remained the top four in HNI population rankings. "They comprised 63.6% of the global HNI population, an increase of 0.7 percentage points from 2020, contributing to 72% of global HNI population growth," the report said.
'2022 may be a difficult year'
Wealth creation may take a hit in 2022 due to stock market corrections. "As of end April 2022, our estimates indicate that global HNI wealth has declined ~4% (versus December 31, 2021). Due to high exposure to equity, HNI wealth in North America is expected to be most impacted, followed by Europe which also copes with the on-going geopolitical crises," Capgemini said in the report.
