India is witnessing a remarkable surge in the number of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) in 2024, signaling a transformative shift in the nation’s economic landscape. The rapid growth of India’s affluent population is gaining global attention, fueled by a blend of young entrepreneurs, tech pioneers, and established industrialists.
Wealth Growth and Global Standing
India is not only seeing a rise in the number of wealthy individuals, but its global influence is also expanding. As of 2024, India ranks 6th globally in terms of UHNI population and 3rd in Asia, trailing only China and Japan. The number of UHNIs in the country has reached 13,600, marking a 6% growth from the previous year, with expectations that the population will increase by 50% by 2028, significantly outpacing the global growth average of 30%. Meanwhile, India is home to over 850,000 HNIs, and this figure is expected to double to 1.65 million by 2027. Notably, 20% of India’s millionaires are under 40, signaling the growing influence of younger wealth creators.
Drivers of Wealth Creation
The sources of wealth in India are diverse, with several key sectors contributing to the rise of the country’s affluent population:
- Tech and Start-ups: Nearly 30% of new HNIs have amassed their fortunes through technology, fintech, and start-ups.
- Manufacturing: The “Make-in-India” initiative has fueled industrial wealth, accounting for 21% of the UHNI economy.
- Real Estate: Luxury and commercial real estate, particularly in urban areas, contribute 15% to the UHNI wealth pool.
- Equities: The Indian stock market has been a major driver of wealth, with equity-based wealth growing by 18% year-on-year.
Real Estate and Second Homes
Real estate remains a cornerstone of wealth allocation for HNIs and UHNIs in India:
- Luxury Homes: The share of luxury homes in total sales has surged to 28% in 2024, up from 16% pre-pandemic. High-end properties in cities like Mumbai, Delhi, and Bengaluru are highly sought after, with emerging second-home destinations such as Goa, Alibaug, and Jaipur gaining popularity.
- International Investments: Around 14% of UHNIs own properties abroad, particularly in cities like Dubai, London, and Singapore. The average international property investment surpassed INR 12 crore ($1.44 million) in 2024.
- Sustainability Focus: Green buildings and ESG-compliant real estate are attracting growing interest among affluent buyers who prioritize sustainability.
Changing Spending Patterns
The affluent in India are shaping global luxury consumption trends:
- Luxury Cars: Over 37% of Indian HNIs purchased high-end vehicles in 2024, contributing to record sales for brands like Lamborghini, Porsche, and Rolls Royce.
- Travel and Experiences: UHNIs are spending an average of INR 6 crore ($720,000) annually on bespoke vacations, luxury cruises, and exclusive experiences.
- Jewelry and Art: India is the 5th largest market for luxury watches and bespoke jewelry, with increasing demand for prestigious brands like Cartier and Patek Philippe.
Investment Preferences and Future Outlook
The investment landscape of India’s wealthy is shifting towards diversification:
- Portfolio Composition: 32% of wealth is allocated to real estate, 20% to private equity and start-ups, particularly in AI, blockchain, and cleantech, and 8% of UHNIs are investing in cryptocurrencies, despite regulatory uncertainty.
- Global Diversification: Nearly 25% of Indian UHNIs are expanding their investments abroad, with a focus on North America and Europe. Additionally, over 40% have established family offices to manage wealth, succession planning, and philanthropy.
Emerging Trends
Several emerging trends are shaping the future of India’s wealthy:
- Millennial Wealth Creators: Over 15% of HNIs are under 30, driven by the tech sector, start-up unicorns, and IPOs. This number is expected to rise to 25% by 2030 as younger entrepreneurs increasingly drive wealth creation.
- Alternate Citizenship and Global Mobility: Approximately 10% of UHNIs acquired alternate citizenships in 2024, with destinations like Portugal, Malta, and the UAE offering global mobility and tax benefits.
- Health and Wellness: High-net-worth families are investing heavily in wellness-focused real estate, customized healthcare, and anti-aging solutions, alongside increasing investments in preventive healthcare and luxury wellness retreats.
India’s Growing Global Influence
India’s wealthy are now prominent players on the global stage:
- Rising Economic Prominence: India’s UHNI population grew by 6% in 2024, while China’s growth slowed to just 2%, signaling India’s rising economic prominence.
- Philanthropy: Indian UHNIs donated over INR 60,000 crore ($7.2 billion) in 2024, focusing on education, healthcare, and sustainability.
- Luxury Market Growth: As India’s luxury goods market grew by 12% in 2024, global brands are increasingly tailoring their offerings to Indian tastes, including bespoke couture and experiential services.
Conclusion
The rise of HNIs and UHNIs in India is not just a sign of growing wealth but also a reflection of the country’s economic transformation. From reshaping the luxury market to driving philanthropic initiatives and embracing new investment opportunities, India’s affluent are playing an integral role in shaping the global economy. With a rising cohort of young wealth creators, a booming tech sector, and increasing global influence, India’s journey toward wealth dominance is just beginning.
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