The Number Of Super Rich Indians Have Tripled. Now There's 928 Indians Worth A 100 Million Dollars!

The number of ultra high net worth (UHNW) individuals in India has more than trebled to 928 in 2014 from 284 in 2013, according to a Boston Consulting Group (BCG) report.

Experts say don't compare stats between 2014 and 2015

Though BCG has clarified that the two figures cannot be compared because there has been a change in methodology, following the new study, India's ranking among countries in terms of the number of UHNW individuals has risen to number four in 2014 from the 13th position in 2013. The report defines individuals with financial wealth (excluding residential properties) of $100 million (Rs 640 crore) as UHNW.

BCG executives said, "Currency impacts versus the US dollar (our segments are in US dollars) and methodological changes to the national accounts' data make a comparison between the 2014 and 2015 reports very difficult." Going by 2015 methodology, UHNW individuals in India have increased to 928 in 2014 from 800 in 2013.

Asia Pacific - a hub of wealth

According to BCG, the Asia-Pacific region will be the main driver of increase in global wealth, fuelled by the rich in China and India. What's more, wealth in India is projected to record the fastest growth of 21% between 2014 and 2019 - double the growth rate of the next fastest wealth creator China (10.3%). In its 2015 wealth report called 'Winning the Growth Game', BCG has said that private wealth in China and India showed solid market gains, driven mainly by investments in local equities. China's equity market rose by 38% and India's by 23%.

Who are we competing with?

The US remained the country with the largest number of UHNW households at 5,201, followed by China (1,037), the UK (1,019), India (928), and Germany (679). The highest density of UHNW households was found in Hong Kong (15.3 per 100,000 households), followed by Singapore (14.3), Austria (12), Switzerland (9), and Qatar (8.6). UHNW households held $10 trillion, or 6%, of global private wealth in 2014, which was in line with 2013. At a projected CAGR of 12% over the next five years, private wealth held by the UHNW segment will grow to an estimated $18 trillion in 2019.

Which segment is growing the fastest

This top segment is expected to be the fastest growing, in both the number of households and total wealth. The number of households in this segment is projected to grow at a CAGR of 19% over the next five years. "With such a large number of households entering this segment, the average wealth per household is projected to decline at a CAGR of 6%," the report said. Private wealth held by the upper high net worth (HNW) segment (those with between $20 million and $100 million) rose by a healthy 34% in 2014 to $9 trillion. With a projected CAGR of 9% over the next five years, this segment is expected to top $14 trillion in 2019. Private wealth held by the lower HNW segment (those with between $1 million and $20 million) is expected to grow at a slightly lower rate (7%) over the next five years.

Now 17 Million Millionaires in the world

Globally, the total number of millionaire households (those with more than $1 million in private wealth) reached 17 million in 2014, up strongly from 15 million in 2013. The increase was driven primarily by the solid market performance of existing assets, in both the new and old worlds. Millionaire households held 41% of global private wealth in 2014, up from 40% a year earlier, and are projected to hold 46% of global private wealth in 2019.

From a regional perspective, the US still had the highest number of millionaire households in 2014 (7 million), followed by China (4 million, which showed the highest number of new millionaires at 1 million). Japan was third, with a million millionaire households, down from previous years due to the fall of the yen versus the US dollar (with fewer households reaching the $1-million mark in dollar terms).

India's billionaire tally

Although the BCG report does not rank billionaires, an earlier Huran report said that India ranks three among global billionaires preceded by US and China. India had moved up two places in the Huran Report, overtaking UK and Russia, where billionaires saw their wealth erode due to weak markets. The report listed 97 Indian billionaires which included new entrants such as Anand Burman of Dabur group, P V Ramaprasad Reddy of Aurobindo Pharma, Nitin Sandesara of Sandesara Group, Vivek Chaand Sehgal of Motherson Sumi Systems and Nusli Wadia of Bombay Dyeing and Britannia Industries.

(Originally published in the Times of India)