Mumbai: You guessed it: The rich are getting richer. The economic growth rates in India may be decelerating, but if recent research is to be believed, there is no downturn for the very wealthy in the country.
The number of Indian ultra-high net worth households (households with wealth over $100 million) in 2014 was 928, according to a Boston Consulting Group (BCG) report.  The percentage of private financial wealth they own is 20%. This measure is projected by BCG to go up to 24% by 2019.
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.Â
According to BCG, The Asia-Pacific region steamed past Europe in terms of private financial wealth in 2014 and it will be the main driver of increase in global wealth, fuelled by the rich in China and India.
What is 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%).Â
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%.Â
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.Â
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.
Here’s what BCG’s report says on the global trends:
From a regional, the growth of private wealth continued in most markets in 2014, but at significantly different rates. A strong “old world versus new world” dynamic was observed, with the so-called new world growing at a far faster pace.