India added 39,000 new dollar millionaires in 2024, a 4.4% rise compared to the previous year, according to the UBS Global Wealth Report. This puts India in fourth place globally for millionaire growth, behind Turkey, the UAE, and Russia. With a total of 917,000 millionaires, India now surpasses Brazil, Russia, and South Africa. However, China remains far ahead with over 6.3 million millionaires.
Wealth Inequality Continues to Rise
Despite the increase in high-net-worth individuals, India ranked fifth globally in the rise of income and wealth inequality since 2020, as measured by the Gini coefficient. The report places India among the bottom six countries based on median income growth in the past five years. In 2024 alone, India ranked eighth in income inequality among the 56 countries surveyed.
Financial Asset Ownership Still Low
The report highlights that most of India’s wealth is not held in financial assets like stocks or bonds. Financial assets make up only 20% of total wealth in India. In contrast, countries like Sweden and Israel have over 80% of personal wealth in financial assets. Even other emerging economies like Brazil and South Africa exceed 60%.
This asset gap limits wealth creation opportunities for a broader segment of India’s population. UBS attributes the millionaire surge in many countries to rising values in financial assets, which India has yet to fully tap into.
Debt Remains Low in India
On a positive note, personal debt levels in India remain low—under 10%—similar to countries like Russia, UAE, and Hong Kong. In comparison, Finland, Norway, and Switzerland have personal debt ratios between 21% and 26%, the highest in the report.
Major Wealth Transfer Expected Ahead
India is expected to see one of the largest intergenerational wealth transfers over the next 25 years. The country ranks seventh globally in expected transfer volume. Notably, India will be the youngest country among the top nations in this category, indicating a longer timeline for wealth redistribution across generations.
Globally, UBS estimates that $83 trillion in wealth will be transferred in this period, with the US accounting for over a third of that. Brazil and China follow behind.
A Need to Build More Financial Assets
The report concludes with a recommendation for India to focus on increasing its share of financial assets to ensure broader prosperity. While financial savings have risen, there’s still significant room for growth. This opens opportunities for capital markets, mutual funds, banks, and wealth managers. Additionally, the upcoming wave of wealth transfer could be a major area of focus for financial professionals, legal experts, and policymakers alike.
