A pic from the Mumbai airport, adjacent to slums depicting two versions of India. Coincidentally Mumbai is the official residence of at least 28 billionaires from the country (New World Health).
A report from New World Health paints a highly rosy picture about the state of the Indian economy and its richness.
The report, worked upon by the Johannesburg based market research company, said that the Indian economy would almost treble in the coming ten years, piping Germany and UK's GDP by 2027, to reach $25.2 trillion. According to their study, India's GDP in 2017 stood at $8.2 trillion (IMF data suggests $2.8 trillion).
The study highlights strong economic growth prospects as well as rising entrepreneurs in the country thanks to good educational system, strong ownership rights, and an ongoing crackdown on corruption leading to improved ease of doing in business. The study cites these factors as reasons for a rise in a growth in wealth. It also found "highly competitive wages when compared to worldwide peers", as a reason for certifying the country's rising growth metrics.
Entrepreneurship and economic growth have also received a face-lift thanks to growth in sectors such as technology, healthcare, real estate, financial services and professional services.
The report majorly spotlights HNWI (high net worth individuals) trends and behavioral demographics. The table of contents of the report, which is priced for $312, suggests featured companies such as Aston Martin, Burberry, Ferrari etc.
Besides heaping praise on the country's economic system, the report also predicts that in the coming ten years, there will be more billionaires in the country- 350 precisely. There is also good news for those aspiring to become millionaires.
Currently, India is home to 119 billionaires, and 28 of those, the highest number prefer Mumbai as their residence.
"The number of HNWIs living in India is expected to reach just over 950,000 by 2027, while the number of billionaires is expected to reach around 350 by 2027," forecasts the agency.
Last year, India had 330,000 millionaires, while in 2007 the count was 124,000. At the current exchange rate, a million US dollars is equivalent of Rs 6.9 crores. New World Wealth says that in 2017, HNWI held $3.9 billion or 48% of India’s estimated $8.2 billion wealth.
India might have provided higher millionaires had it not been for 38,000 HNWIs who opted to exit the country between 2007-17. Their departure had a negative impact, but India produced more millionaires on a net basis. "Once the standard of living in India improves, we expect several wealthy people to move back," added the report.
It is unclear whether the report calculated the loss, the exit of a few gentlemen (Mallya, Modi, Modi, Choksi) from the country, has had on the economy.
Here are the other details about the Uber rich from the study:
- Mumbai and Delhi are preferred residence HNWIs, multi-millionaires, and billionaires.
- London, New York, Singapore, and Dubai were popular second home destinations for the uber-rich. One in five Indian HNWIs held real estate in these locations.
- Holdings (cash in US dollars and equities) of Indian HNWI wealth held in offshore rose to nearly 19% in 2017 from 15% in 2007.
This one details the riches across India's major cities.
Two weeks ago, a report by Capgemini found India as the fastest market for HNWIs.
In January, another study stated that the top 1% of the over 1.2 billion population had cornered 73% of the overall wealth generated during the year. International rights group Oxfam that released a study ahead of the World Economic Forum said that 67 crore Indians comprising the population's poorest half saw their wealth rising by just 1%.
The report, 'Reward Work, Not Wealth', has also found that India's top 10% of population have 73% of the total wealth in the country. "Indian billionaires wealth increased by Rs 4,891 billion - from Rs 15,778 billion to over Rs 20,676 billion," it said, adding the amount of Rs 4,891 billion was sufficient to finance 85% of the budget on health and education in all Indian states.