Salary cuts, job losses and a slowdown are now part of the post-reform reality in the country’s economy, but there is a flip side to the story that shows underlying economic strength.
The number of Indian affluent households with wealth in excess of $100,00 is set to rise to 29 million in the next eight years as compared to a mere 2.1 million estimated at present, a report jointly prepared by Barclays Wealth and Economist Intelligence Unit has said.
Indian households typically hold more than half of their savings in physical assets such as land, houses, cattle and gold.
The research also shows that property currently accounts for around 43 per cent of overall household wealth in India.“India with a population of 1 billion today has about 2.1 million high net worth households but this is set to increase significantly and this will also give a push to private banking in the country, which is currently at a nascent stage,”
Satya Narayan Bansal, chief executive, Barclays Wealth told Hindustan Times. India, which does not feature in the list of top 10 in the household wealth index is set to grab the eighth position by 2017, the report said.
The report estimates the average net worth per household will touch $57,000 within eight years, up from the current $12,000.
Bansal said smaller cities like Jalandhar, Ludhiana and Nagpur which have hitherto been outside the ambit of private banking, would throw up huge business opportunities. “The number of high net worth households in these towns has always been high but they have remained outside the ambit of private banking. However with the slowdown, these families are now more open to the idea,” he said.