India's Ultra High Networth Households are spending more than investing according to a report.
The Kotak Wealth Management report, Luxury holds its Own, in its seventh edition of 'Top of the Pyramid' describes the spending pattern, digital behaviour, philanthropy and other family business narratives.
A survey conducted by Kotak Wealth Management, found the Ultra HNIs allocated 55 per cent of their income for discretionary spends in which the share of apparels, electronic gadgets, philanthropy and holidays increased substantially.
But their spend on buying jewellery, especially gold is less, and their allocation towards investments also fell for the year 2017.
According to Jaideep Hansraj, CEO, Wealth Management & Priority Banking, Kotak Mahindra Bank, the rise in personal spend is indicative of the segment's confidence in business growth.
''The UHNI household segment reiterate their confidence in the policies and reform measures undertaken by the Government,'' he said.
According to the report, the UHNHs are expected to double to 330,400 by 2022; their numbers have increased 10 per cent to 160,000 last year.
The UHNH's in India make up less than half a per cent of the total population and held about 70 per cent of the country's total wealth at Rs153 trillion in 2017. This is expected to almost triple at Rs352 trillion by 2022.