Wealth creation in India is likely to accelerate significantly with the number of ultra-wealthy individuals expected to double to 3,371 by 2024, a Knight Frank report says.
According to the latest Knight Frank Wealth Report, as of 2014, India is home to 1,652 ultra high net worth individuals (UHNWIs), which is likely to swell to 3,371 by the year 2024, registering a jump of 104 per cent.
Commenting on the report findings, Knight Frank India Chairman & Managing Director Shishir Baijal said wealth creation in India is expected to "accelerate".
"This reflects a more positive outlook for India's economy after 2014 was marked by capital outflows and a sharp devaluation of the rupee," Baijal said.
The number of UHNWIs in India has increased from 622 in 2004 to 1,652 in 2014, registering a rise of 166 per cent over the past decade (2004-2014).
"...with the new Indian government commanding a majority in the lower house for the first time in three decades, there is real opportunity to introduce far more transparency.
That in turn will boost foreign investment. WealthInsight forecasts a 104 per cent increase in India's UHNWIs over the next decade," Knight Frank said.
However, wealth concentration continues to remain a "challenge" in India.
"At 0.1 UHNWI per lakh population, India ranks a distant 84 among 97 countries globally in terms of equitable distribution of wealth," Knight Frank India Chief Economist & Director, Research Samantak Das said.
Moreover, the concentration of wealthy Indians also extends geographically as the top six cities contribute 58 per cent of the number of UHNWIs, which is likely to accelerate to 68 per cent in the next 10 years.
According to the report over the next ten years, only the US, China and Russia will have more billionaires than India. By the year 2024, the United States is expected to have as many as 50,767 UHNWIs, followed by China (15,681).
Within India, Mumbai is expected to see the fastest rise in UHNWIs followed by Delhi and Hyderabad.
Interestingly, the prime residential prices in Mumbai is costlier than Dubai. Owning a prime residential property in Mumbai costs Rs 61,300/sq ft, while in Dubai it is Rs 40,455/sq ft, the report said.