India is witnessing a transformative era of wealth creation, with nearly 25% of its super-wealthy prioritizing assets in North America and Europe. From bustling metros to emerging tier-II cities, the nation’s affluent population is expanding rapidly, driven by a dynamic mix of young entrepreneurs, tech pioneers, and seasoned industrialists.
Wealth Growth and Global Standing
India ranks sixth globally in the UHNI population and third in Asia, trailing only China and Japan. In 2024, India’s UHNI count reached 13,600, marking a 6% annual growth, with projections indicating a 50% increase by 2028. The number of HNIs in India is also rising, expected to double to 1.65 million by 2027, with 20% of these millionaires under 40.
Sources of Wealth
The engines of wealth creation in India are diverse:
- Tech and Start-Ups: Nearly 30% of new HNIs owe their fortunes to technology, fintech, and start-ups.
- Manufacturing: The ‘Make-in-India’ push has fueled industrial wealth, contributing 21% to the UHNI economy.
- Real Estate: Luxury and commercial real estate contribute 15%, driven by urbanization and premium developments.
- Equity: The Indian stock markets have enriched India’s affluent, with wealth from equities growing by 18% year-on-year.
Second Homes and International Investments
Real estate remains a cornerstone of wealth allocation for Indian HNIs and UHNIs:
- Luxury Homes: The share of luxury homes in total sales surged to 28% in 2024, with Mumbai, Delhi, and Bengaluru as top picks.
- International Properties: Approximately 14% of UHNIs own properties abroad, with Dubai, London, and Singapore as hotspots. The average international property investment exceeded ₹12 crore ($1.44 million) in 2024.
- Green Buildings: ESG-compliant real estate has gained interest among affluent buyers.
Spending Patterns
India’s affluent are shaping luxury consumption trends:
- Luxury Cars: Over 37% of Indian HNIs purchased high-end vehicles in 2024.
- Travel and Experiences: UHNIs spend an average of ₹6 crore ($720,000) annually on bespoke vacations and luxury cruises.
- Jewelry and Art: India is the fifth-largest market for luxury watches and bespoke jewelry.
Investment Preferences
The investment landscape for India’s wealthy reflects a strategic shift:
- Portfolio Composition: 32% of wealth is allocated to real estate, 20% to private equity and start-ups, and 8% to cryptocurrencies.
- Diversification: Nearly 25% of Indian UHNIs are diversifying abroad, with assets in North America and Europe.
- Family Offices: Over 40% of UHNIs have established family offices for wealth management and philanthropy.
Emerging Trends
- Millennial Wealth Creators: Over 15% of India’s HNIs are under 30, driven by start-up unicorns and tech ventures.
- Alternate Citizenship: About 10% of UHNIs secured alternate citizenships in 2024 for global mobility and tax benefits.
- Health and Wellness: Investments in wellness-focused real estate, customized healthcare, and luxury wellness retreats are rising.
India’s Global Influence
India’s wealthy are now prominent players on the global stage:
- Comparison with China: India’s UHNI population grew by 6% in 2024, while China’s grew by just 2%.
- Philanthropy: Indian UHNIs donated over ₹60,000 crore ($7.2 billion) in 2024, prioritizing education, healthcare, and sustainability.
- Luxury Market: India’s luxury goods market grew by 12% in 2024, prompting global brands to tailor their offerings for Indian tastes.