India to be home to 4.37 lakh millionaires by 2018, says a study by Wealth-X

India will be home to 4.37 lakh millionaires by 2018 with the count doubling by 2023, as a rapid rise is expected in the ultra-rich population over the coming 10 years - making it 'India's Decade' in terms of wealth creation, a new study says.

Stating that a "long-standing caste system" makes the wide gaps in incomes and wealth more acceptable in India, the study by Wealth-X found that wealth creation and luxury consumption are relatively hampered by "social inequality or austerity agendas" in other emerging markets like Brazil and China.

It has also credited a "renewed economic optimism and performance, further propelled by the election of a new, reformist government" for the sharp growth in India's ultra-rich population.

Over the past year, the number of millionaires in dollar terms in the country rose from 1,96,000 to 2,50,000, registering an increase of 27 per cent.

"Looking forward, India will continue to generate new millionaires at a rapid pace; we forecast 4,37,000 millionaires by 2018, and potentially double that number by 2023," Wealth-X said in its report titled 'Decades of Wealth: The Next 10 Years In Wealth and Luxury'.

According to the report, emerging markets such as India and South Africa would see their millionaire populations rise significantly in the coming decade.

"We may be now entering 'India's Decade', Wealth-X said adding that over the last year, the rise in Indian wealth and the number of wealthy has been "impressive".

Moreover, the nation also has a young, well-educated population with high levels of entrepreneurship and business ownership, underpinned by a well-developed legal system that in turn would help in wealth creation, the report said.

Aligned to this wealth growth will be an equally substantial increase in luxury consumption, the report said.

"The rise in discernment amongst the world's wealthy will not only affect the brands they buy, but it will also affect what they buy. Increasingly, the wealthy will spend more on experiential luxury and less on physical luxury, as has already become the case amongst the wealthy in Europe and North America," It added.