India had an estimated 123,000 millionaires or high net worth individuals (HNWIs) at the end of 2007, up 22.7 per cent from a year earlier, says the third annual Asia-Pacific Wealth Report published by Merrill Lynch and Capgemini.
HNWIs are individuals with more than $1 million in net assets, excluding their primary residence and consumables.
The growth in India's HNWI population was the fastest worldwide and exceeded gains of 22.7 per cent a year earlier. Last year, the combined wealth of India's HNWIs rose 25.7 per cent to $440 billion, says the latest report from Merrill Lynch and Capgemini.
According to the report, rapid economic expansion, increased foreign investment and gains on the country's stock markets fueled the jump in India's HNWI population last year. Indian HNWIs allocated 36 percent of their assets to equities, among
the highest in the nine regional markets covered by the report.
"Despite dislocations in developed markets, the number of high net worth individuals in India grew at a faster rate than the global average," said Pradeep Dokania, head of Global Wealth Management for DSP Merrill Lynch. "Domestic demand and Asia's appetite for commodities continue to drive wealth accumulation in India," he added.
According to the 2008 Report, the average net worth of Indian HNWIs rose slightly to $3.6 million, compared with $3.4 million for the Asia Pacific region. The global average was $4 million.
The number of Asia-Pacific HNWIs expanded to 2.8 million at the end of last year, an increase of 8.7 per cent and exceeding the global growth rate of 6 per cent. The region was home to 27.8 per cent of the world's HNWI population. The report covered nine key markets in Asia Pacific: Australia, China, Hong Kong, India, Indonesia, Japan, Singapore, South Korea and Taiwan.
According to the report, for the third straight year, Asia Pacific dominated the list of the world's 10 fastest-growing markets for HNWIs, taking five of the top spots. India led the way, followed by China which saw a 20.3 per cent increase. South
Korea, Indonesia and Singapore posted gains of 18.9 per cent, 16.8 per cent and 15.3 percent, respectively.
The number of Ultra-HNWIs in Asia Pacific jumped 16.4 per cent to 20,400 last year, nearly double the 8.8 percent global growth rate. India was home to about 1,081 Ultra-HNWIs, or individuals with more than $30 million in financial assets. Their combined wealth broke through the $100 billion barrier for the first time, jumping 27.1 per cent to $116 billion.
