WORLD WEALTH REPORT

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Context

• The Capgemini Research Institute’s World Wealth Report 2024 reveals significant trends regarding High Net-Worth Individuals (HNWI) in India.

Increase in HNWI Population

• Growth Rate: In 2023, India saw a notable increase of 12.2% in the number of HNWIs compared to 2022.
• Total Population: The total count of HNWIs reached 3.589 million in 2023, showcasing a substantial rise.

Financial Prosperity of HNWIs

• Wealth Surge: India's HNWIs witnessed a remarkable 12.4% growth in their financial wealth during 2023.
• Total Wealth: The collective financial wealth surged to $1,445.7 billion in 2023, compared to $1,286.7 billion in 2022.
• Global Impact: A buoyant global market in 2023 contributed to a staggering $3.8 trillion increase in HNWI wealth.

Regional Performance in APAC

• Leading Performers: India and Australia stood out in the Asia-Pacific region.
• India: Recorded HNWI wealth growth of 12.4% and a population increase of 12.2%.
• Australia: Experienced HNWI wealth growth of 7.9% and population growth of 7.8%.
• Overall APAC Growth: The region witnessed a 4.2% increase in HNWI wealth and a 4.8% rise in HNWI population.

Economic Indicators

• Decline in Unemployment: The unemployment rate dropped to 3.1% in 2023, down from 7% in 2022.
• Economic Expansion: India's economy expanded by 7.3% in 2023, surpassing the 7% growth in 2022.
• Market Capitalisation: A notable 29.0% increase was observed in 2023, following a 6% rise in 2022.
• National Savings: The national savings rate climbed to 33.4% of GDP in 2023, up from 29.9% in 2022.

Global HNWI Trends

• Global Wealth and Population Growth: In 2023, there was a 4.7% increase in HNWI wealth and a 5.1% rise in HNWI population worldwide.
• Client Expectations: Wealth Management at Capgemini, noted heightened demands from clients, underscoring the importance of effective wealth management strategies.

Conclusion

• Resilient Economy: India's robust economic performance, coupled with a surging equity market, drove significant wealth growth among HNWIs.
• Wealth Management: The evolving needs of clients underscore the critical role of wealth managers in navigating the dynamic economic landscape.

READ ABOUT INEQUALITY IN INDIA: https://www.iasgyan.in/daily-current-affairs/inequality-in-india

PRACTICE QUESTION Q. Discuss the socio-economic factors contributing to inequality in India. What are the major challenges and potential solutions to address this issue?

SOURCE:THE HINDU