By Rajesh Singla
India, a land of contrasts, has long been home to a diverse spectrum of wealth. In recent years, this has seen remarkable transformations, especially at the upper echelons of affluence. This anticipated surge not only reflects the nation’s burgeoning economic potential but also signals a profound shift in wealth dynamics. From self-made entrepreneurs to industry titans, India’s UHNIs are poised to redefine the contours of prosperity and leave an indelible mark on the global stage.
The Ascent of India’s Ultra-High-Net-Worth Individuals (UHNIs)
According to a Knight Frank India report, India’s ultra-high-net-worth individuals (UHNIs), defined as those with a net worth of $30 million or more, are poised for an extraordinary surge. By the year 2027, their ranks are projected to swell by an impressive 58.4%, ascending from 12,069 in 2022 to a formidable 19,119. These UHNIs, often called the “super-rich,” wield substantial financial clout and influence across various sectors.
The report also highlights that India’s high-net-worth individual (HNI) population, with an asset value of $1 million or more, will more than double to 1.65 million by 2027, recording an impressive 107% rise over the next five years. Notably, the global population of Ultra HNIs experienced a decline of 3.8% in 2022 after a remarkable 9.3% surge in 2021. Economic slowdowns, frequent rate hikes, and geopolitical uncertainties impacted wealth and investment portfolios worldwide, including in India.
While 100 Indians owned assets worth more than ₹1,000 crore in 2012, the number has grown to 1,103 in 2022, according to the recently released IIFL Wealth Hurun India Rich List. During the pandemic, between 2019 and 2022, there were 353 additions to the list.
Among individual countries, the United States leads by a significant margin with 123,870 ultra-high-net-worth individuals (UHNIs), equivalent to 51% of the world’s total UHNIs. Mainland China follows as a clear second with 32,910 UHNIs, and Germany ranks third with 9,100. India, with 5,480 UHNIs, and Canada, with 4,560, complete the remaining top ten countries ranked by UHNW numbers. Russia, the United Kingdom, Japan, France, and Australia also contribute to this elite group of wealthy individuals.
The HNI Boom
Beyond the stratospheric wealth of UHNIs and billionaires lies another fascinating segment: the high-net-worth individuals (HNIs). These individuals, with assets valued at $1 million or more, form a critical bridge between the affluent and the super-rich. In 2022, India boasted 797,714 HNIs. However, brace yourselves for a seismic shift—their numbers are set to more than double by 2027, reaching an impressive 1.65 million This remarkable 107% rise over five years underscores the dynamic growth of wealth in the country.
How to become HNIs and Ultra HNIs
Becoming an Ultra-High-Net-Worth Individual (UHNI) is a journey that requires strategic planning, astute investment decisions, and access to exclusive opportunities in private markets,
Private companies often offer greater wealth creation potential compared to public companies. Private market investments allow you to access a diverse range of investment opportunities, including emerging industries, disruptive technologies, and niche markets. By aligning your investment strategy with the dynamism of private markets, you can unlock opportunities for exponential wealth growth and long-term financial success.
Explore Investment Platforms that invest in Startups and Pre IPO, Look for investment platforms that cater to High-Net-Worth Individuals (HNIs) and Ultra-HNIs, offering early access to private market investments. These platforms provide opportunities to invest in Startups, SMEs, PreIPO and unicorns, which have the potential for substantial wealth creation. By participating in private market investments, you can benefit from early-stage growth opportunities and potentially lucrative returns.
These platforms provide avenues for direct investment in companies poised for rapid growth and potential IPOs. By investing in early-stage financing rounds and pre-IPO opportunities, you position yourself to benefit from the value-creation journey of innovative and high-potential businesses.
Seek Professional advice from investment bankers & advisors, consult with wealth management experts, and investment professionals to develop a customized wealth management strategy.
Global Trends and Local Factors
The global landscape also plays a role in shaping India’s wealth dynamics. In 2022, the global population of Ultra HNIs experienced a 3.8% decline, primarily due to economic slowdowns, interest rate hikes, and geopolitical uncertainties. India mirrored this trend, witnessing a 7.5% decline in its Ultra-HNI population during the same period. However, resilience prevailed, and the overall HNI population still managed a 4.5% year-on-year expansion in 2022.
What fuels this wealth surge? India’s bustling development activities across core and non-core sectors have been instrumental. The country’s position as a global startup hub has also contributed significantly. Sectors like global manufacturing, infrastructure development, and startups provide fresh opportunities, propelling economic momentum and wealth creation.
The country’s significant position as a global startup hub has also contributed to creating new wealth. Fresh opportunities in sectors such as global manufacturing, infrastructure development, and startups are expected to further boost economic momentum and wealth creation.
Conclusion
India’s journey from riches to super riches is a testament to its entrepreneurial spirit, innovation, and resilience. As the nation continues to evolve, its wealth landscape will remain a captivating saga—one where fortunes rise, and the pursuit of prosperity knows no bounds.
(The author is Rajesh Singla, Founder & CEO, Planify, and the views expressed in this article are his own)
