India's ultra-high-networth individuals (UHNWIs) population, those with assets over $30 million, is expected to grow by 63 per cent in the next five years to 11,198, cited the Wealth Report 2021 from Knight Frank. At present, India is home to 6,884 UHNWIs and 113 billionaires. The billionaires club in India is expected to increase significantly by 43 per cent to 162 by 2025. The growth will outpace the global average growth of 24 per cent and Asia average of 38 per cent during the period. According to the report, an individual requires $ 60,000 to join the wealthiest 1 per cent club in India. The wealth growth forecasts predict India's threshold of 1 per cent wealthiest club to almost double in the next five years.
In terms of passions-led investment, jewellery is the most preferred object of desire for Indian UHNWIs, followed by art, watches, wine and classic cars. In line with global trends, Indian UHNWIs too cited a higher preference for wine, compared to rare whisky in 2020.
Globally, 43 per cent of UHNWIs are more interested in environmental, social and governance (ESG) focused investments than 12 months ago. In India, 46 per cent of ultra-wealthy are interested in ESG focused property investments. However, awareness of ESG focused property investments is still evolving and 89 per cent of Indian UHNWIs feel they need more information to assess ESG related investment opportunities, the report said.
Despite the uncertainty in the global market, ultra-wealthy Indians in 2020 experienced a 59 per cent increase in their wealth. In 2021, 91 per cent of Indian UHNWIs expect to see an increase in wealth with the start of a new economic cycle. Knight Frank predicts that Asia is likely to see the largest rise in the number of UHNWIs with an estimated growth of 39 per cent, led by Indonesia (67 per cent) and India (63 per cent). Whilst Indonesia boasts of a 67 per cent growth in its UHNWI population during this period, which is the highest globally, India's UHNWI population will be 10 times that of Indonesia.