|
Wealth growth in India
Investment banking major CLSA said in its report, titled 'Wealthy Asia'
that there were a total of 1,73,000 millionaires in India at the end of
2010, with total wealth of $949 billion (over Rs 42,00,000 crore).
For 2015, the report forecasted the country to have as many as 4,03,000
HNWIs (High Net Worth Individuals), who have been classified as those
having minimum investible assets of $one million, with a combined wealth
of $2,465 billion (more than Rs 1,00,00,000 crore).
High Net Worth
Individuals lifestyle
CLSA said that wealth growth in India was expected to be "extremely
strong" on the back of strong economic growth and robust returns from
key asset classes. "The stock market should provide almost 14% annual returns, while we
estimate Indian properties to rise on an average close to five% per annum," it said.
The report, which tracked the wealth market in entire Asia excluding
Japan, said that India accounted for 15% of total HNWI population in the
region, which was second largest after China's 44%. However, the number of HNWIs remains extremely low in India, when
compared with the total adult population.
CLSA said that India had only one HNWI in every five thousand of adult
population at the end of 2010 and the ratio was expected to grow to one
in two thousand adults by 2015. In comparison, China had one HNWI in every two thousand of adult
population (0.05%) in 2010 itself and the ratio was expected to rise to more than double to 0.13% by 2015.
CLSA said that the number of millionaires would rise by more than 9 lakh
by 2015 in China, thus accounting for more than half of the HNWI growth
in the region. China had 5.02 lakh HNWIs with a total wealth of $2.6 trillion in 2010
and this was expected to rise to about 13.8 lakh with combined wealth of
$8.8 trillion by 2015. The total number of HNWIs in the entire region is expected to grow to
2.8 million by 2015, more than doubling from about 1.2 million in 2010.
The combined wealth of these people would nearly triple to $16 trillion
during the same period, from about $5.6 trillion at the end of 2010.
Noting that the wealth was not evenly distributed, CLSA said that the
HNWIs in the entire region accounted for just 0.06% of the adult population, while the ratio was 1.5% in two city-states, Singapore and
Hong Kong. The ratio was low at 0.05% in China and even lower at 0.02% in India.
"As the region develops, the surge in Asian fat cats and the impact of
their spending-power will be a multi-decade theme," the report said.
CLSA further said that there were wide differences in the wealth levels
of the different countries. While an average adult's wealth in Singapore and Hong Kong stood at just
above $150,000, the levels were only a fraction of this in less developed countries.
"The typical person has less than $5,000 wealth in India, the
Philippines and Indonesia," the report said, while pegging the same for China at about $10,000.
"The forces for wealth creation are extremely favourable for Asia over
the coming years. The economies are growing faster than any other region
in the world." "Savings ratios are high and the stock markets are likely to provide
strong returns over time. The value of business investments is rising on
strong growth and low capital costs," CLSA said. Besides, property prices were escalating as the middle class were moving
their cash out of low-yielding bank accounts into appreciating real assets, it added. |
|
|
