Bangalore: India is all set to see an increase of three times in the number of its high net worth individuals over the next decade. According to a Asia-PacificWealth report released by Merrill Lynch Wealth Management and Capgemini SA on Tuesday, growth in Asia Pacific’s HNWI population and wealth is set to pick up as market conditions improve.
While the future seems bright, 2008 saw a slump in the number of riches in the regions. Amid the global economic downturn and market volatility, Asia Pacific’s population of high net worth individuals fell 14.2% to 2.4 million.
The region’s economies are now showing signs of recovery and are expected to grow at a faster pace than the global economy by 2010. “China and India are likely to lead HNWI growth in Asia Pacific, underpinned by robust domestic consumption and a growing number of affluent individuals,” said the report’s authors. High net worth wealth in China and India is estimated to increase by more than US$4 trillion over the next ten years.
The combined wealth of Asia Pacific’s HNWIs is estimated to grow at an annual rate of 8.8% until 2018, faster than the global average of 7.1%.
“Even though India has stringent regulations, huge market potential and growth have made it important for global companies while considering their business strategies and investment decisions. India needs to watch out for new trends like emerging wealth outside metro areas,” said Salil Parekh, CEO, Financial Services, India and Asia Pacific, Capgemini.