India to be seventh wealthiest nation in 2018: BCG

India had 1.75 lakh millionaire households, ranking 16th in the number of millionaire households in 2013.

India will be the seventh wealthiest nation in 2018, says a Boston Consulting Group report ‘Riding a wave of growth: Global Wealth 2014.’

In 2013, India had 1.75 lakh millionaire households, ranking 16th in the number of millionaire households. India had 284 ultra-high-net-worth households. Ultra high net worth households are those which have more than $100 million in financial wealth. United States had the highest number of millionaire households at 71.35 lakh, followed by China 23.78 lakh and Japan 12.40 lakh.

The highest density of millionaire households was in Qatar (175 out of every 1000 households), followed by Switzerland (127) and Singapore (100).

The report predicts that wealth held by all segments above $1 million is projected to grow by at least 7.7% per year through 2018, compared with an average of 3.7% in segments below $1 million.

Global financial wealth grew by 14% in 2013 to reach a total of $ 152 trillion. In comparison, the global wealth grew by 8% in 2012.

North America and Western Europe remained the wealthiest regions in the world, followed by Asia Pacific (excluding Japan) at $ 37 trillion. The growth was driven by rebound in equity markets. A key driver in the rise of private wealth in Asia Pacific region has been strong GDP growth over the past five years, especially in China, India and Indonesia, says the report.

Going ahead, the global private wealth is expected to grow at a CAGR of 5% over the next five years to reach an estimated of $198 trillion by the end of 2018. The report says that Asia Pacific region and its new wealth will account for about half of the total growth.