New Delhi: India saw an 8.8 per cent rise in high-net-worth individual (HNWI) wealth in 2024, witnessing 378,810 millionaires with a total wealth of $1.5 trillion by the end of last year, according to a report released on Wednesday.
India also had 333,340 millionaires ‘next door’ at the end of 2024, with a wealth of $628.93 billion, according to the Capgemini Research Institute’s ‘World Wealth Report 2025’.
Moreover, India had 4,290 ultra HNWIs at the end of 2024, with a combined wealth of $534.77 billion.
While 85 per cent of the Indian next-gen HNWIs plan to switch from parents’ WM (Wealth Management) firm within 1-2 years, as compared to 81 per cent of the surveyed global next-gen HNWIs, 51 per cent of them cite services unavailable on their preferred channels as a reason to switch WM firms.
About 41 per cent of the surveyed Indian next-gen HNWIs cite ineffective digital tools to conduct transactions as a reason to switch WM firms, said the Capgemini report.
By 2030, 98 per cent of next-gen HNWIs in India are planning to increase their offshore assets by more than 10 per cent. This greater focus on offshore investments comes from better investment options (55 per cent), better wealth management services (65 per cent), better market connectivity (54 per cent), better tax regulations and economic and political stability (49 per cent).
The report revealed that the global high-net-worth individuals (HNWIs) population rose by 2.6 per cent in 2024.
This increase was driven by the growth in the population of ultra-high-net-worth individuals (UHNWIs), which grew by 6.2 per cent, as strong stock markets and AI optimism boosted portfolio returns.
The data indicates that alternative investments, such as private equity and cryptocurrencies, are now an established presence in HNWI holdings, representing 15 per cent of their portfolios.
“The great wealth transfer will be a defining moment for the industry. Despite global wealth on the rise, 81 per cent of inheritors plan to switch firms within one to two years of inheritance. Potentially losing these unsatisfied clients is going to create significant risk for the global wealth management sector,” said Kartik Ramakrishnan, CEO of Capgemini’s Financial Services Strategic Business Unit and Group Executive Board Member.
The next generation of high-net-worth individuals arrives with vastly different expectations from their parents. This necessitates an urgent shift away from traditional strategies to effectively cater to their evolving needs on this wealth journey.
“Firms must also prepare to equip advisors with the digital capabilities, potentially augmented with agentic or generative AI, to mitigate the risk of losing both clients and key employees,” Ramakrishnan added.
(IANS)
