Indians’ individual wealth to treble by 2016: study
15 Dec 2011
Rich Indians are getting richer by the year, with the individual wealth of Indians is likely slated to treble to Rs249,00,000 crore by 2016 from the present Rs86,500,000 lakh crore, according to a study by Karvy Private Wealth.
This implies a compounded annual growth rate of 23 per cent over the next four years – well ahead of other countries, the wealth management arm of the Hyderabad-based Karvy Group found.
The report said individual wealth of Indians has surged by over 18 per cent in recent years, with fixed deposits and bonds accounting for nearly one-third of their total investments.
Noting that the individual wealth in the country has been growing consistently over the past few years, the report says the growth rate will outshine the rest of the world by 2016.
"The combination of continuous reforms and favourable demographics has, in the long run, placed India's GDP firmly on the high-growth path. We have added as much wealth in the last five years as we have done in the first 50 years post-independence," said Sunil Mishra, chief executive officer of Karvy Private Wealth.
The significant growth in 2010-2011 was led by fixed deposits, insurance, equity and alternative assets. Investments in fixed deposits and bonds accounted for Rs26,76,878 crore or about 31 per cent of total amount.
The estimate excludes wealth held by government and institutional holdings. Further, only financial assets have been taken into account and not physical assets such as real estate and gold.
Annual household savings is currently at 34 per cent, and expected to grow 8 per cent a year on average, it said.
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