Millionaires in India on the rise

MUMBAI: Over the next decade, the figure of dollar millionaires in India is likely to touch 4,11,000 from a negligible number at present.

According to a report by the Economist Intelligence Unit (EIU) on behalf of Barclays Wealth, these households are estimated to be worth $1.7 trillion, or over the country’s current market capitalization of about $1.3 trillion.

But as a percentage of the population these households will comprise just 0.2 per cent. In comparison, smaller countries such as Singapore and Hong Kong will have the highest concentration of millionaires with about forty per cent of the households in each country having wealth in surplus of $1 million.

In absolute terms, however, India is expected to have one of the fastest-growing prosperous markets in the world, making it the 8th largest wealth centre by 2017. The numbers of mass affluent, with wealth over $500,000, is predicted to rise from a negligible figure in 2007 to 1.9 million by 2017.

The 5-year bull run has contributed considerably to the rising fortunes, with many corporates and entrepreneurs tapping the markets to raise funds. Inherited wealth and rising corporate salaries are also key drivers.

As in many rising markets, the wealthy in India have kept much of their wealth in tangible goods. Fresh research by McKinsey tell s that Indian households hold over half their savings in physical assets like land, houses, cattle and gold.

Property accounts for 43 per cent of overall household wealth. The yellow metal has also been a popular investment tool among Indians, who are the world’s largest consumers of gold. Recent guess suggest that the population owns two hundred billion dollar in gold, equal to nearly half of the country’s bank deposits.

But over the next decade this might change, with the increasing popularity of financial instruments like REITs and real estate mutual funds as well as gold ETFs and bullion trading platforms. Investors are likely to shift to these avenues of holding traditional assets like property and gold.


  1. Posted May 13, 2008 at 4:41 am | Permalink

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  2. Posted May 16, 2008 at 11:24 pm | Permalink

    Yes that is true but what will be most overall probably effect on that other ?

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