4th July 2007 - 23:03

Number of Millionaires in India Increases by 20.5%

According to the most recent World Wealth Report by global investment bankers Merrill Lynch and financial consultants Capgeimini India is now the world's second-fastest producer of millionaires, just behind Singapore.

The reasons given for this increase are high economic growth, the bullish stock market and the ever increasing property prices. The report states "the largest growth of the HNWI (High Net Worth Individuals) population occurred in Singapore and India, where the increases over 2005 was 21.2 and 20.5 percent, respectively." In 2006 India had 100,015 millionaires, compared with 83,000 in 2005.

A millionaire as defined by the report is an individual with over $1 million in financial assets excluding the primary residence or private art or antique collections.

The collective worth of ultra-rich Indians is estimated at well over $100 billion. This is three times the amount required to get rid of India's $33 billion fiscal deficit and would leave India debt-free!

According to the report "Singapore, India, Indonesia and Russia witnessed the highest growth in HNWIs".

India's prosperity is the result of economic growth of over 9% per annum due, in part, to foreign investment and growth in services and manufacturing.

Non-resident Indians also have a greater role to play in leading global wealth-management institutions.

HNWIS like to spend their money primarily on luxury collectibles (automobiles, boats, airplanes etc…) (26%), art (20%), and also wines, antiques and coins (14%).

The report also states that in future "mature markets like the United States are expected to act as an anchor on the world economy as moderate growth rates settle in. With many central banks tightening monetary policy, the period of high liquidity that has so stimulated recent growth may soon come to an end. Finally, the growth rates of Asia and Latin America are expected to ease back as global demand slows. "

HNWIs, led by the ultra-wealthy,also gave an estimated U.S. $285 billion to philanthropic causes in 2006.

Finally, according to the Report the "global perspective of HNWIs continued to increase in 2006, driven by an expanded awareness of international developments, better international fund performance and risk mitigation."

For the full report see : MerrillLynch


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