India still shining for the super-rich

Sees second-highest growth in HNI population in 2012, next only to Hong Kong

India's economy may be in slow gear but its high-networth individuals (HNIs) are on a fast track, courtesy a buoyant stock market.

Consider this: India clocked 22.2 per cent growth in its population of HNIs, or those with $1 million or more in investable assets, in the 2012 calendar year. The rate was the second-highest, next only to Hong Kong, which saw 35.7 per cent growth. BSE's Sensex gained 24 per cent last year, aided by reform steps and some monetary easing.

Both Hong Kong and India have ably overcome their poor performance of 2011, when their HNI population had contracted 17.4 per cent and 18 per cent, respectively, says the World Wealth Report 2013, released by Capgemini and RBC Wealth Management on Wednesday.

The report said the world was home to 12 million millionaires and their collective net worth had reached a record high of $46.2 trillion in 2012. The investable wealth (which excludes the value of personal assets and property like primary residences, collectibles, consumables, and consumer durables) of the world's HNIs rebounded in 2012, growing 10 per cent, after declining 1.7 per cent in 2011.

As many as one million individuals joined the global HNI population, reflecting an increase of 9.2 per cent.

"The rise in HNI population was strong in 2012. However, North America's lead in both population and wealth is likely to be eclipsed again in the future by Asia-Pacific," said Jean Lassignardie, chief sales & marketing officer, Capgemini Global Financial Services.

In 2012, North America's population of 3.73 million HNIs surpassed Asia-Pacific's 3.68 million, while its HNI wealth reached $12.7 trillion, above Asia-Pacific's $12.0 trillion. However, in terms of the overall wealth growth rate, Asia-Pacific actually had a higher rate of 12.2 per cent, compared with North America's 11.7 per cent.

Going forward, the outlook looks cautiously upbeat, led by Asia-Pacific. The report says global HNI wealth is forecast to grow by 6.5 per cent annually over the next three years, with the Asia-Pacific region projected to grow at one-and-a-half times the global average of 9.8 per cent and lead global growth.