Mumbai (Maharashtra) [India], Mar 5 (ANI): Despite rising geopolitical tensions, slow growth forecasts and uncertainty remaining the norm in 2019, about 51 per cent of the ultra-wealthy Indians experienced an increase in their fortune.
According to Knight Frank's Wealth Report 2020, the number of ultra high net worth individuals (UHNWIs with net worth of more than 30 million dollars or about Rs 220 crore) in India is predicted to grow by a whopping 73 per cent in the next five years, almost doubling the count to 10,354 from 5,986 in 2019.
The growth in India's ultra wealthy is expected to be on the back of the growth prediction of the economy with GDP touted to reach the 7 per cent mark by 2022. Despite the current slowdown in the economy, global economic pundits see strong long-term economic growth.
Knight Frank also predicts that by 2024, Asia will be the world's second largest wealth hub outperforming Europe, with a five-year growth forecast of 44 per cent.
However, even after such a steep rise, it will reach only half the size of North America's UHNWI population, which is predicted to increase by 22 per cent over the same period.
"India's economic advantage is its large and growing consumer base, which helps in general wealth creation," said Shishir Baijal, Chairman and Managing Director of Knight Frank India.
As India enters the 30th year of its liberal economic and trade policy since 1991, the country has also become an important market for global products and services.
"It appeared at some point in time that India was skipping the 'manufacturing generation' of economic growth moving straight to services, we now see the country rising in favour as a manufacturing destination for global corporations," he said.
"As a result of a well-rounded growth in the future, private wealth is expected to rise in proportion to the economic growth," said Baijal.
Out of the top 20 fastest growing countries presented in the report, six are located in Asia -- led by India (73 per cent growth), five are in Europe led by Sweden (47 per cent growth) and three are in Africa led by Egypt (66 per cent growth).
The wealth sizing model built by Knight Frank shows that within Asia itself, India is projected to lead the growth in UHNWIs followed by Vietnam (64 per cent growth), China (58 per cent growth) and Indonesia (57 per cent growth).
Liam Bailey, Global Head of research at Knight Frank said it is exciting to see how wealth is developing across Asia.
With the number of ultra-wealthy in India, Vietnam, China and Malaysia outpacing many other markets over the next five years, it will be interesting to see how this impacts the global property market.
"With property accounting for a large proportion of total UHNWI wealth -- almost a third, according to the Knight Frank Attitudes Survey -- it will be fascinating to see where in the world the wealthy invest and into which asset classes," said Bailey.
Knight Frank LLP is a leading independent global property consultancy. Headquartered in London, It has more than 19,000 people operating from over 512 offices across 60 markets.