Wealth in India: A Snapshot from the UBS Global Wealth Report 2024
India’s financial landscape continues to evolve, as highlighted by the latest UBS Global Wealth Report. With a notable increase of 39,000 dollar millionaires in 2024, the total count now stands at 917,000. This 4.4% rise positions India fourth globally in millionaire growth, trailing behind Turkey, the UAE, and Russia.
Where India Stands Globally
Despite the impressive numbers, China remains in a league of its own with over 6.3 million millionaires, while India surpasses countries like Brazil and South Africa. The report underscores that the United States and Mainland China hold more than half of the world’s wealth, with India contributing just 3.4%.
Rising Inequality: A Cause for Concern
One troubling aspect of India’s wealth accumulation is the increasing income inequality. The Gini coefficient, which measures income distribution, has risen by two points since 2020. This places India fifth in a global ranking of rising inequality, following the Netherlands, Austria, Kazakhstan, and China.
When looking at overall median income changes over the past five years, India ranks among the bottom six countries worldwide. For 2024, it holds the eighth position in terms of inequality, fairing better than Brazil and Russia but worse than China.
The Financial Asset Gap
Interestingly, the stark increase in the number of millionaires globally is largely tied to the appreciation in financial assets, particularly stocks. With financial assets only accounting for 20% of India’s total wealth, the country lags significantly behind others like Sweden and Israel, where this figure exceeds 80%.
This lack of financial asset ownership underscores a critical opportunity for growth. Investing in financial assets can offer a viable pathway to wealth creation, especially in a nation where personal debt remains low—below 10%—a comforting statistic compared to countries like Finland and Switzerland.
The Future of Wealth Transfer
Looking ahead, India ranks seventh among nations projected to experience the highest wealth transfer over the next 25 years, thanks to its young population. While the United States is expected to account for a third of the estimated $83 trillion in global wealth that will change hands, Brazil and China also feature prominently in wealth transition projections.
What Does This Mean for You?
For individuals seeking to maximize their financial well-being, this report offers several insights:
- Invest in Financial Assets: Consider allocating a portion of your savings to stocks, mutual funds, or other financial instruments to build a more substantial financial portfolio.
- Be Aware of Inequality: Understand the larger economic picture and how it impacts your financial decisions. Awareness can lead to better opportunities in a shifting market.
- Plan for Wealth Transfer: If you anticipate inheriting wealth, educating yourself on investment strategies and financial management can provide a foundation for preserving and growing your inheritance.
As policymakers wrestle with the widening gap between the wealthy and the rest, individuals can take proactive steps to enhance their financial futures. By focusing on building financial assets and planning for the wealth transfer, there are significant opportunities ahead for both rich and aspiring millionaires alike.
Writes about personal finance, side hustles, gadgets, and tech innovation.
Bio: Priya specializes in making complex financial and tech topics easy to digest, with experience in fintech and consumer reviews.