The recent growth in the number of Indians earning more than 10 crore annually is an indication of India’s rapidly expanding wealth class. According to a report by Centrum Institutional Research, India has seen a significant surge in the number of individuals earning nine-figure incomes, marking a 63% increase over the last five years.
This dramatic rise highlights the evolving landscape of economic prosperity in the country. The number of high-income earners is expected to continue growing as India’s economy develops further.
India’s wealth landscape is changing, and the report reveals that the number of Indians earning over Rs 5 crore annually has also risen, with 58,200 individuals now in this bracket—a 49% growth in just five years. However, the focus remains on those earning Rs 10 crore and above.
This group, now consisting of 31,800 Indians, shows that the nation is fostering a growing elite class with significant financial clout. The rise in these high earners further cements India’s status as an emerging global economic force.
Growth in Indian High Earners
The number of Indians who earn over Rs 10 crore annually reflects a crucial shift in wealth distribution. In FY19, this figure was significantly lower, but the 63% increase over the last five years demonstrates a rapid concentration of wealth among a select group of individuals.
This phenomenon can be attributed to a range of factors, including the boom in industries such as technology, finance, and entrepreneurship. The wealth of these Indians is not only increasing in numbers but also in terms of their overall economic impact.
The total number of high-income earners in India is reflective of the country’s economic strides. The report also highlights the fact that Indians earning over Rs 50 lakh annually now number nearly 10 lakh, showcasing the broader expansion of the middle and upper-middle classes.
As India continues to experience economic growth, the number of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) is expected to grow, further contributing to the wealth of the nation.
As the number of wealthy Indians rises, so does the overall income generated by this group. The cumulative income of those earning more than Rs 10 crore annually has surged at a staggering compound annual growth rate (CAGR) of 121% between FY19 and FY24.
This growth is particularly impressive when compared to the 106% CAGR for those earning over Rs 5 crore annually. In contrast, individuals earning above Rs 50 lakh annually have seen their collective income grow by 64%. The report indicates that wealth among India’s elite is accumulating at a rapid pace, and this trend is expected to continue.
Impact of Wealth on Indian Economy
The rise in the number of high-income Indians earning over Rs 10 crore annually has significant implications for the broader Indian economy.
With their cumulative income growing by 121%, these individuals play a crucial role in driving economic growth, particularly in sectors such as real estate, luxury goods, and financial services. As these individuals continue to accumulate wealth, their spending power increases, which has a cascading effect on various industries.
However, despite the increase in wealth among Indians, the report also points out that only 15% of financial wealth in India is professionally managed. This is in stark contrast to more advanced economies where 75% of wealth is managed professionally.
The lack of professional management indicates that a significant portion of India’s wealth may not be optimized for long-term growth. As more Indians join the ranks of high-net-worth individuals, there is a growing need for professional wealth management services to help these individuals navigate the complexities of managing their growing financial assets.
While the number of Indians earning over Rs 10 crore annually has grown significantly, it’s important to note the broader wealth trends in the country. For those earning over Rs 5 crore, the CAGR was 106%, and their total income now stands at Rs 40 lakh crore.
Meanwhile, individuals earning above Rs 50 lakh per year have seen their collective income grow to Rs 49 lakh crore over the past five years. This rapid accumulation of wealth among Indians is a testament to the country’s economic resilience and potential.
Future of Wealth in India
The report forecasts continued growth in the wealth of India’s high-net-worth individuals and ultra-high-net-worth individuals.
By 2028, the combined financial assets of these Indians are projected to increase from $1.2 trillion in 2023 to $2.2 trillion. This growth is likely to be driven by a variety of factors, including India’s expanding economy, its growing middle class, and increased access to global markets.
As more Indians join the ranks of high-net-worth individuals, there will be a greater emphasis on the need for wealth management services. The rise in wealth among Indians also signals potential opportunities for investment in industries such as technology, healthcare, and renewable energy. India’s economic growth is expected to create new avenues for wealth creation, with high-net-worth individuals playing a key role in shaping the country’s economic future.
The surge in the number of Indians earning over Rs 10 crore annually reflects a broader trend of wealth accumulation in India.
The rapid rise in high-income earners highlights the growing economic potential of the country, while also underscoring the need for professional wealth management. With projections indicating continued growth in the wealth of India’s elite, the future looks promising for both the individuals who are part of this exclusive group and for the broader Indian economy.
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