India’s millionaire population is on track to boom again, with a new study forecasting a 34% increase in the number of Indian high net worth individuals (HNWIs) by 2020.
The report, which was carried out by Wealth Insight, also predicted the wealth belonging to those HNWIs would increase by 51% by 2020, reaching US$2.1 trillion.
If the predictions are correct, it will represent a marked pick up from 2015, which saw growth in the HNWI population of just 4.4%, following a decline of 1.1% in 2012-13.
Wealth Insight said the technology sector was India’s biggest single source of HNWI population growth, accounting for 15.1% of all HNWI wealth.
Mumbai is leading the growth in India’s millionaires, with 37.4% of India’s HNWIs being based in that city. Delhi is distant second, with 12.3% of the nation’s millionaires. Hyderabad, Chennai, Bengaluru and Kolkata are among the other major centres.
Wealth Insight head Oliver Williams said cities with “thriving technology and financial markets” have seen the most growth, adding: “The tech sector has in turn thrived on angel investments – proof that many of India’s HNWIs and Non-Resident Indians (NRIs) are putting money back into the economy. The technology space is attaching 51% of all angel and venture investments made in India.”
However, he said that the unprecedented rise in HNWIs comes hand in hand with increased inequality. “By 2020, Mumbai will become one of Asia’s major wealth hubs as its millionaire population swells to 142,000. However, confined inequality could pose a serious issue to this status as India’s mass urbanisation is buttressed by surging wealth,” he said.