Aboard the Money Train: 135% Rise in Millionaires in India by 2025
By 2025, India will be among top 5 performing ‘High Net Worth Individual’ markets in the world.
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The number of millionaires in India is growing strongly and at the end of 2015, around 2,36,000 high net worth individuals (HNWI) were living in the country, with a combined wealth of $1.5 trillion, says a report.
According to the India 2016 Wealth Report, by New World Wealth, while most countries worldwide have experienced negative or negligible growth since 2007, India has performed “very well” in terms of wealth performance through this period.
Millionaires or HNWIs refer to individuals with net assets of $1 million or more.
The major factors that were responsible for growth in wealth performance in the country include:
- Strong growth in the local construction
- Financial services
- Information Technology
- Business process outsourcing and healthcare sectors
- Solid economic growth
- Increased levels of entrepreneurship
135 Percent Rise by 2025
The rise will be fuelled by strong growth in the local financial services, professional services and media sectors. The main factors that encourage wealth growth in a country include, strong ownership rights, followed by strong economic growth.
A well-developed banking system and stock market are also factors, as they encourage people to invest their money within a country and grow their wealth locally, the report said.
The report however, noted that excessive government regulations are a major hurdle for new businesses in India.
The report further noted that India is often cited as a difficult place for overseas investors to do business as there is a lack of transparency in several parts of the economy and the cost of starting a business in India is very high.
(With inputs from PTI.)
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