NEW DELHI: Millionaires in India are likely to see their wealth grow by a whopping 405 percent over the next decade – the fastest in the world, according to a study by global consulting major Deloitte.
“Among emerging markets in 2020, India is likely to have the highest per capita wealth among millionaires with $4.25 million – placing it ahead of the US,” said a report from the New York-headquartered Deloitte Center for Financial Service.
“The $5-$30 million cohort in India will likely see the greatest growth, at 161 percent, while the $1-$5 million cohort and over $30 million cohorts follow closely with likely growth rates of 142 percent and 115 percent, respectively, over the next decade,” it added.
The $1-$5 million group will likely continue to dominate the share of millionaire households in India, with 73 percent of millionaire households belonging to this cohort in 2020.
Among other fast growing countries, China’s wealth among millionaires will grow by 394 percent, followed by Brazil at 257 percent, and Russia at 241 percent.
The study, titled ‘The next decade in global wealth among millionaire households’, said emerging markets would see a significantly higher growth rate in millionaire households compared to developed markets.
However, India is likely to have the lowest density of millionaire households in 2020 with only 0.3 percent of households holding over $1 million in wealth.
“While India ranks lower than the other BRIC nations in average density, the total estimated millionaire households are expected to be in the range of 0.69 million.”
This would include approximately 0.51 million households in $1-$5 million group, 0.13 million households in $5-$30 million group and 0.05 million households in the over $30 million group.
Additionally, the study indicated that the average wealth per household in India is almost 50 percent higher than that of China.
Deloitte’ study said while some of the wealth creation in India would continue to be driven by “old wealth” drivers like real estate and family business, a sizeable portion is also expected to come from the ‘new wealth’ drivers like investment, salary income, equity stakes and new business.
China is likely to be among the top 10 wealthiest economies by 2015 with an estimated $3.6 trillion in wealth.