What Factors Contributed to India's 8.8% Growth in HNWI Wealth in 2024?

New Delhi, June 4 (NationPress) India experienced a remarkable 8.8% increase in the wealth of high-net-worth individuals (HNWIs) in 2024, culminating in a total of 378,810 millionaires with a collective wealth of $1.5 trillion by the end of the previous year, as per a report released on Wednesday.

Additionally, India had 333,340 millionaires residing nearby at the end of 2024, holding a wealth of $628.93 billion, according to the Capgemini Research Institute’s 'World Wealth Report 2025'.

Furthermore, India boasted 4,290 ultra HNWIs by the end of 2024, with an aggregate wealth of $534.77 billion.

Notably, 85% of the Indian next-gen HNWIs intend to leave their parents’ wealth management (WM) firms within 1-2 years, compared to 81% of surveyed global next-gen HNWIs. Among them, 51% indicated that the unavailability of services on preferred channels is a key reason for switching WM firms.

About 41% of the surveyed Indian next-gen HNWIs mentioned ineffective digital tools for transactions as another reason for their decision to change WM firms, as highlighted in the Capgemini report.

By 2030, 98% of next-gen HNWIs in India are planning to boost their offshore assets by over 10%. This shift towards offshore investments is fueled by factors like better investment options (55%), enhanced wealth management services (65%), improved market connectivity (54%), and favorable tax regulations along with economic and political stability (49%).

The report also disclosed that the global population of high-net-worth individuals (HNWIs) grew by 2.6% in 2024.

This growth was primarily driven by an increase in the number of ultra-high-net-worth individuals (UHNWIs), which saw a rise of 6.2% due to strong stock markets and optimism surrounding AI, boosting portfolio returns.

Data indicates that alternative investments, including private equity and cryptocurrencies, have now secured a significant position in HNWI portfolios, constituting 15% of their assets.

"The impending wealth transfer will mark a pivotal moment for the industry. Despite the global increase in wealth, 81% of inheritors plan to transition to new firms within one to two years of inheritance. Losing these dissatisfied clients poses a substantial risk to the global wealth management sector," stated Kartik Ramakrishnan, CEO of Capgemini’s Financial Services Strategic Business Unit and Group Executive Board Member.

The new generation of high-net-worth individuals enters the arena with significantly different expectations compared to their parents. This calls for an urgent departure from traditional strategies to meet their evolving needs throughout this wealth journey.

"Firms must also prepare to empower advisors with digital capabilities, potentially enhanced by agentic or generative AI, to reduce the risk of losing both clients and key employees," Ramakrishnan added.