0.001% of India’s Population To Be Ultra Rich in 5 Years

A New Report Forecasts Unprecedented Wealth Accumulation

Newsreel Asia Insight #146
Feb. 29, 2024

A new report indicates a significant shift in India’s wealth distribution, with a forecast showing an unprecedented increase in the number of ultra-rich individuals over the next five years. This shift, when examined through a lens that scrutinises societal and economic dynamics, reveals a deeper narrative about disparity and the allocation of resources.

From 2023 to 2028, India is set to experience the most significant increase globally in the population of ultra-high net worth individuals (UHNWIs), defined as those with a net worth exceeding $30 million (or 2.46 billion rupees). This projection comes from Knight Frank’s leading analysis, “The Wealth Report 2024,” as reported by Business Standard. The study forecasts a 50.1% surge in the count of India’s ultra-wealthy, climbing to 19,908 by 2028 from 13,263 in 2023.

On one side, we have the ultra-rich, a small segment of the population – 0.001422% of India’s population of 1.4 billion – whose wealth is reaching new heights, defying global economic trends. On the opposite spectrum, the vast majority of India’s population, who despite contributing to the nation’s economic growth, remain distant spectators of this wealth accumulation.

The interests of the ultra-rich are clear: to grow their wealth and secure their position in the global hierarchy of wealth. This pursuit often involves investment in luxury real estate, high-value assets and exclusive opportunities not accessible to the general populace. Meanwhile, the broader population seeks basic economic stability, access to quality education, healthcare and employment opportunities, aspirations that are increasingly challenging to achieve amidst growing economic disparities.

For ordinary individuals, the ramifications of this wealth concentration are profound. It translates to a widening gap in access to essential services and opportunities. The dreams of upward mobility and a better life, which should be within reach in a growing economy, seem ever more elusive. This disparity not only affects individual aspirations but also has the potential to strain the social structure, leading to increased feelings of disenfranchisement and social unrest.

Moreover, the concentration of wealth in the hands of a few can lead to a skewed development agenda, where policies and economic reforms may disproportionately favour the affluent, further entrenching inequality. This situation risks sidelining critical issues such as poverty alleviation, affordable housing and environmental sustainability, which are crucial for the broader well-being of society.

From a broader perspective, this trend reflects a global challenge, where wealth concentration is not unique to India but a pattern observed across many economies. It raises questions about the sustainability of such economic models and the role of governance in ensuring equitable growth. The situation in India serves as a case study in the urgent need for policies that not only spur economic growth but also ensure that the benefits of such growth are equitably distributed.

For example, a recent study, looking at how jobs and the economy have grown in India from 1983 to 2021, showed that even though the economy had been growing, that hadn’t led to enough new jobs for everyone. From 1987 to 2005, India saw strong growth in both its economy and the number of jobs available. But after that, until 2019, the economy kept growing without creating many new jobs, said the study, conducted by D. Tripati Rao and his colleagues from the Indian Institute of Management, Lucknow, in collaboration with researchers from Birla Institute of Technology and Science, Pilani, and the Union Ministry of Agriculture and Farmers Welfare.

The dialogue around wealth and its distribution must evolve. It should not only focus on the creation of wealth but also on its role in creating a society where opportunity is not a privilege of the few but a right accessible to all. The narrative must shift towards inclusive growth, where economic policies are evaluated not just by the wealth they generate, but by how they improve the quality of life for the majority.