The number of high-net-worth individuals (HNI) in India rose by 12.2 percent in 2023 due to the country's strong economy and the success of the local equity markets. to 35.89 lakh, according to the World Wealth Report 2024.
The financial wealth of Indian HNI's climbed from USD 1,286.7 billion in 2022 to USD 1,445.7 billion in 2023, a 12.4 per cent increase. India's market capitalization jumped by 29 per cent in 2023, compared to a mere 6 per cent increase in 2022, marking a multifold increase.
India Emerges as top performer
APAC's (Asia Pacific region) top performer was India, which saw a 12.4 per cent increase in HNI wealth growth despite a 12.2 per cent increase in HNI population growth. Australia came in second, reporting a 7.9 per cent YoY increase in HNI wealth and a 7.8 per cent growth in HNI population.
The report also stated that "a robust performance of the equity markets and a resilient economy drove wealth growth in both (India and Australia) of these countries." India's economy grew by 7.3 per cent in 2023, exceeding the increase of 7 per cent in 2022, while the country's unemployment rate dropped to 3.1 per cent in 2023 from 7 per cent in 2022.
According to the report, the domestic economy grew at its fastest rate in the previous six quarters, thanks to strong private consumption and encouraging trends in manufacturing and construction.
Global Growth Of HNI's
In 2023, the global population and wealth of high-net-worth individuals (HNIs) increased by 5.1 per cent and 4.7 per cent, respectively, driven by improving macroeconomic conditions and rebounding equities markets.
According to the report, this trend is amplified further by factors like increased capital expenditure, a robust banking system, credit growth, rising demand for power and cars, and productivity gains brought about by digitalization.
HNI's Growth in Asia-Pacific-Region
In the Asia-Pacific region, the reported growth rate of HNI wealth was 4.2 per cent, whereas the growth rate of HNI population was 4.8 per cent.
India's national savings as a share of GDP grew from 29.9 per cent in 2022 to 33.4 per cent in 2023. Concurrently, nominal private consumption increased by 8 per cent in 2023 to USD 2,200 billion.
In 2023, the nominal government consumption was USD 379.8 billion, indicating a 6 per cent increase.
