India’s personal wealth to touch $5T by 2022: BCG

The country’s personal wealth is expected to grow at a CAGR of 13 per cent to $5 trillion by 2022, according a report by the Boston Consulting Group (BCG).

Its personal wealth was estimated to be $3 trillion in 2017. India is also expected to become the 11th wealthiest nation globally by 2022 in terms of total personal wealth, improving its rank by four places from 2017, the report said.

Globally, there is total personal wealth of $202 trillion, which has grown 12 per cent in 2017. 2017 was one of the strongest growth years in terms of personal wealth. One of the factors that helped this growth is the strength of US dollar.

The US leads the chart in terms of total personal wealth with $80 trillion in 2017, which is projected to touch $100 trillion by 2022. China is ranked second, with a total personal wealth of $21 trillion, which is expected to more than double to $43 trillion by 2022.
By 2022, India will move ahead of Switzerland, Hong Kong, the Netherlands and Taiwan in terms of personal wealth. The report noted that India constitutes the second largest pool of wealth among the emerging markets, with $2.2 billion. It is the fifth largest Asian market in terms of the number of affluent, high networth and ultra high networth individuals.

There were 322,000 affluents, 87,000 high networth individuals and 4,000 ultra high networth individuals in the country in 2017, according to the report.It observed that nearly 70 per cent of the country’s personal financial wealth would be accessible to wealth managers in 2022.

The 70 per cent investable wealth in the country includes listed equity, bonds, investment funds, currency and deposits, and other smaller asset classes, while the 30 percent non-investable wealth includes life insurance and pensions, unlisted equity and other equity.

The report also noted that around 6 per cent of the private wealth is currently held offshore.