India's private wealth to grow by 200 per cent over the next decade

24 May 2018 Authored by Consultancy.in

Consistent with wider predictions about India’s GDP growth over the near future, a new report from market research and consulting firm New World Wealth projects a similar trajectory for the country’s private wealth levels. The report predicts a 200% jump in India’s private wealth by 2027, taking the total figure to just under $25 trillion.

Perhaps the most commonly employed indicator to gauge a country’s economic performance is its GDP and the growth patterns therein. Over the last year, there has been broad consensus amongst analysts that the lion’s share of global GDP growth in the near future will take place in China and India. 

The Big Four accounting and advisory firms have provided their endorsement for these figures. According to Deloitte, the Indian economy will be the driver of growth for all of Asia over the next few years, particularly as the population in other economies begins to age. At a more global level, PwC predicts that China will become the largest economy in the world by 2050, followed by India in second place.

Market research and advisory firm New World Wealth, meanwhile, has predicted similar trends, although based on very different indicators. In a new report commissioned by the Afrasia Bank titled ‘Global Wealth Migration Review,’ the consulting firm enumerates the limitations of using GDP as an indicator of economic performance, including multiple counting of the same product and disregard for income disparities, among others.

The 10 countries with the highest private wealth

Instead, New World Wealth uses the private wealth level of a country as the primary economic indicator, arguing that it is a much more direct measurement. Based on this metric, the US is predicatbly the wealthiest country in the world, with the figure for total private wealth standing at just over $62.5 trillion at the start of this year.

The US is followed distantly by China, with just short of $25 trillion in private wealth, ahead of Japan in third with over $19.5 trillion. India currently places in sixth on this list with just over $8.2 trillion in private wealth, behind the United Kingdom and Germany in fourth and fifth with just under $10 trillion and just over $9.6 trillion respectively. 

The top ten is rounded up by France, Canada, Australia and Italy; the first four all exceeding $6 trillion, while Italy brings up the rear with nearly $4.3 trillion. However, of the top 10, only China and India have monumental projected growth rates exceeding 100% over the next decade up till 2027.

Private wealth in China is expected to grow by 180% to reach nearly $69.5 trillion in 2027, while India will grow by as much as 200% to reach a total of $24.7 trillion – taking it to fourth place worldwide. Japan’s growth of 30% will keep it in third place, while the UK and Germany’s modest growth rates of 10% each will see them slide down to fifth and sixth place respectively.

India’s private wealth has been on the rise significantly in recent years. According to the report, the figure has already grown by a staggering 160% over the decade between 2007 and 2017. A report from PwC’s consulting arm Strategy& last year revealed that the number of billionaires in India rose from 16 to 100 between 2016 and 2017 alone, representing a 500% increase. 

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