India’s Wealth Multiplies: 12% Jump in HNIs Signals Thriving Economy

India’s economic story continues to be one of both resilience and ambition. 2023 was an incredible year, witnessing a remarkable surge in the number of high net-worth individuals (HNWIs). This surge paints a picture of a booming Indian market, attracting global attention and showcasing the country’s thriving wealth creation.

Who are High Net-worth Individuals (HNIs)?

In the Indian financial landscape, HNWIs are individuals who hold a significant amount of wealth, typically characterized by their investable assets. These are the individuals who have the resources and ability to invest Rs. 5 crore or more. They occupy a financially privileged position in society and are often involved in shaping the economic and investment trends within the country.

HNWIs are generally categorized into three types based on their net worth:

• High Networth Individuals (HNIs): Those holding liquid assets up to Rs. 5 crore.
• Very High Networth Individuals (VHNIs): Those with a net worth between Rs. 5 crore and Rs. 25 crore.
• Ultra High Networth Individuals (UHNIs): Those with a net worth above Rs. 25 crore.

These individuals are not just wealthy but often the driving force behind businesses and enterprises. Most HNWIs are owners of big companies, holding positions such as CEO, chairpersons, CTOs, and other high-ranking executive roles. Their financial decisions and investments play a crucial role in the market dynamics and can influence economic trends.

HNIs on the Rise

The HNI populace in India didn’t just grow; it soared, marking a significant uptick of 12.2% in 2023, reaching a total of 35.89 lakh individuals and is expected to reach. This growth isn’t merely statistical; it narrates a saga of success stories, financial sagacity, and the entrepreneurial spirit that courses through the nation’s veins.

Wealth Surge 

The financial landscape witnessed a tectonic shift as HNWI wealth leaped by 12.4%, amassing a staggering $1,445.7 billion. The catalysts of this wealth explosion were the robust economy and the stellar performance of domestic equity markets, which saw a 29% increase in market capitalization in 2023. This surge is expected to propel HNWIs to the UHNI segment, growing it by 50% by 2028, making 19,908 Ultra-High-Net-Worth Individuals who directly help India grow by bringing in FDI, providing employment and opening more investment opportunities.

Economic Indicators 

The Indian economy burgeoned by 7.3% in 2023, galloping past the previous year’s growth. The unemployment rate gracefully dipped to 3.2%, mirroring the vibrant job market and the country’s pulsating economic vitality. This expansion was the swiftest in the last six quarters, propelled by robust private consumption and positive trends in manufacturing and construction activities.

Years	Worker Population Ratio	Labour Force Participation Rate	Unemployment Rate
2017-18	46.8%	49.8%	6.0%
2018-19	47.3%	50.2%	5.8%
2019-20	50.9%	53.5%	4.8%
2020-21	52.6%	54.9%	4.2%
2021-22	52.9%	55.2%	4.1%
2022-23	56.0%	57.9%	3.2%

Global Context 

On the international stage, India shone brilliantly, outperforming its peers in the Asia-Pacific region, with the highest HNWI wealth growth of 12.4%. This growth, underpinned by a resilient economy and robust equity markets, heralds India as a beacon of prosperity and a lodestar for economic aspirations.

The Future Outlook 

The narrative of India’s economic success transcends numbers; it’s woven from the aspirations and achievements of its people. As we gaze into the future, the trajectory of India’s HNWIs is poised to scale new heights, reflecting the nation’s indomitable spirit of growth and progress. National savings as a percentage of GDP will increase to 30% in 2022, bringing it into the league of other developed nations. The Indian economy is on a steadfast march toward an era of affluence and influence.

Gross Savings of Countries (GDP%)

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