UHNWIs surge ahead: India’s ultra-high-net-worth individuals (UHNWIs) are expected to see a substantial surge, with their population projected to increase by an impressive 50.1 per cent over the next five years, according to a Knight Frank report.
In 2023, the country boasted 13,263 UHNWIs, a figure that is expected to expand exponentially to 19,908 by 2028.
The definition of UHNWIs, as per the report, encompasses individuals with a net worth exceeding $30 million. This elite cohort represents a driving force in shaping economic dynamics, investment trends, and entrepreneurial endeavours both domestically and internationally.
Turning economic tide
Globally, the outlook is equally optimistic, with the report projecting a 28.1 per cent increase in the number of wealthy individuals over the next five years, reaching 802,891 by 2028. This growth marks a turnaround from the decline witnessed in 2022, with a notable 4.2 per cent increase recorded in 2023.
India’s performance in this regard stands out, with a strong year-on-year (YoY) growth rate of 6.1 per cent in 2023, placing it amongst the leading countries globally. This growth aligns India with nations like Turkey, the United States, South Korea, and Switzerland, all witnessing expansions in their UHNWI populations.
India’s prosperity foreseen
Shishir Baijal, Chairperson & Managing Director of Knight Frank India, expressed confidence in India’s wealth creation, highlighting its vibrancy and dynamism. He highlighted that 90 per cent of Indian UHNWIs anticipate a surge in their fortunes in 2024, with nearly two-thirds expecting a significant increase of over 10 per cent.
Meanwhile, Liam Bailey, global head of research at Knight Frank, raised questions about the mobility of wealth and talent. He pondered whether future growth would remain concentrated in high-growth markets like Asia or potentially migrate to regions such as Europe, Australasia, or North America. Strong growth outside Asia is evident in regions such as the Middle East, Australasia, and North America, with Europe lagging behind and Africa and Latin America facing challenges.
Wealth creation confidence
According to experts, despite global uncertainties like geopolitical tensions and economic fluctuations, India’s path to wealth creation seems strong. Factors like lower inflation risks and possible interest rate cuts domestically indicate further growth for the Indian economy, echoing the optimism of wealthy individuals in the country.
