Einar H. Dyvik
Research expert covering Nordics and global data for society, economy, and politics
High-net-worth individuals (HNWIs) in India - statistic and facts
India minted a dollar billionaire every five days in the last year. The rich or ultra-rich, generally defined as wealthy individuals or households possessing exceptionally high net worth or investable assets, have witnessed exponential growth in the country. As per the widely accepted threshold, high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) have assets of over one million and 30 million U.S. dollars, respectively. Although billionaires like Ambani, Adani, and Tata are household names, they are not representative of ±õ²Ô»å¾±²¹â€™s rich club.
High-end real estate, including owning properties overseas, is the most preferred way of investing for ±õ²Ô»å¾±²¹â€™s rich population, followed by investments in equities. Aside from traditional investment methods, rich investors are increasingly looking to diversify their portfolios by investing in startups. From Hermes to Lamborghini, the lure for luxury goods is also growing, more so because they can be enjoyed while their value appreciates over time. Luxury holidays are a common indulgence as are extravagant weddings.
HNWIs are also strategically investing in foreign countries offering attractive educational opportunities. Securing residency or citizenship in such countries ensures HNWIs top-tier education for their children and global mobility. This is evident in the high demand for U.S. EB5 visas and other EU investment migration programs such as Greece Golden Visa or Portugal Golden Residence Permit.
Behind wealth creation and consumption
±õ²Ô»å¾±²¹â€™s dollar millionaires are a larger group, expanding at a fast rate. ±õ²Ô»å¾±²¹â€™s new rich is diverse ranging from first-generation businesspeople to salaried professionals with company stock options. But what drives this growth and how are the top economic strata making their fortunes?High-end real estate, including owning properties overseas, is the most preferred way of investing for ±õ²Ô»å¾±²¹â€™s rich population, followed by investments in equities. Aside from traditional investment methods, rich investors are increasingly looking to diversify their portfolios by investing in startups. From Hermes to Lamborghini, the lure for luxury goods is also growing, more so because they can be enjoyed while their value appreciates over time. Luxury holidays are a common indulgence as are extravagant weddings.
Millionaires on the move
While producing super-rich, India is also one of the leading countries for HNWI departures. Foreign shores attract their attention for various reasons. These may include uncertain domestic growth prospects, regulatory framework, and better business or lifestyle opportunities. Dubai and Singapore remain the preferred nearest destinations whereas the U.S. is a favorite when looking west.HNWIs are also strategically investing in foreign countries offering attractive educational opportunities. Securing residency or citizenship in such countries ensures HNWIs top-tier education for their children and global mobility. This is evident in the high demand for U.S. EB5 visas and other EU investment migration programs such as Greece Golden Visa or Portugal Golden Residence Permit.
Fixing the class divide
Rising wealth raises the question of its distribution. The top one percent holds 40 percent of the national wealth in India, the most skewed wealth distribution in the world after Brazil. Indian billionaires regularly feature in global rich lists, and their corporations are some of the biggest wealth creators in the country. However, the correlation between wealthy individuals and highest individual income taxpayers is not strong. Although there is widespread debate around the efficiency of wealth tax among economists, the momentum for taxing the ultra-rich in India is growing as revealed in a survey. The international consensus is also building on the issue with G20 finance ministers considering an international minimum tax on wealth.
