India's luxury market is thriving, with a significant increase in demand for high-end products driven by the middle class and ultra-wealthy individuals. There has been a sharp growth in ultra-premium shopping malls across the country in recent years. In the global economic arena, India is experiencing an unprecedented surge in its population of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs). HNIs are defined as individuals with investable assets of at least $1 million, while UHNIs hold assets worth above $30 million. This transformative growth is reshaping not only the nation’s economic landscape but also its global influence, positioning India as a pivotal player in the shifting wealth dynamics.
From bustling metropolitan hubs like Mumbai, Delhi, and Bengaluru to the rapidly growing Tier-II cities such as Jaipur, Pune, and Indore, India’s affluent population is expanding at a pace that is drawing international attention. A key factor driving this change is the rise of young entrepreneurs, tech innovators, and seasoned industrialists. These wealth creators are leveraging India’s robust economic growth, fueled by a thriving start-up ecosystem, government initiatives like "Digital India" and "Make in India," and a growing stock market.
As Dr. Prashant Thakur, Regional Director & Head of Research at ANAROCK, aptly notes, “The global economic landscape is witnessing a shift towards Asia, with India emerging as a key player.”
India’s HNI and UHNI Landscape: Key Statistics
India now ranks sixth globally in UHNI population and third in Asia, trailing only economic giants China and Japan. By 2024, the nation’s UHNI count reached approximately 13,600, reflecting an annual growth rate of 6%. This figure is projected to rise by an impressive 50% by 2028, significantly outpacing the global average growth rate of 30%. India also boasts over 850,000 high-net-worth individuals (HNWIs), a figure expected to double to 1.65 million by 2027.
Notably, 20% of these millionaires are under 40, demonstrating the growing influence of young wealth creators. As Dr Thakur notes, "The growth of young entrepreneurs and tech-driven wealth is reshaping India's economic landscape." India's wealth creation is driven by a mix of traditional industries and emerging sectors. These young wealth creators are disrupting traditional wealth-building avenues with success stories in technology, fintech, and start-ups. For example, tech-driven sectors contributed to nearly 30% of new HNIs in 2024, driven by unicorn founders like Nikhil Kamath of Zerodha and Ritesh Agarwal of OYO.
The Sources of Wealth
India’s wealth creation is a blend of traditional industries and new-age sectors. Traditional strongholds such as manufacturing and real estate continue to generate significant wealth. The 'Make-in-India' initiative has boosted manufacturing, contributing 21% to the UHNI economy. Luxury and commercial real estate, accounting for 15%, have also played a significant role, spurred by urbanization and premium developments.
On the other hand, the tech sector is redefining wealth generation. With start-ups like Byju’s, Swiggy, and Zomato reaching unicorn status, India has emerged as the third-largest start-up ecosystem globally. Additionally, the stock market has been a consistent driver of wealth, as investors benefit from India’s strong economic performance and a growing middle-class consumer base. In 2024, the Indian stock market's growth in equities has led to an 18% increase in wealth year-on-year.
Spending Patterns and Investment Trends
India’s wealthy are displaying diversified investment patterns, balancing ambition with caution. A significant portion of their wealth—32%—is directed toward real estate, focusing on both residential and commercial properties. 20% is invested in private equity and start-ups, particularly in sectors like AI, blockchain, and cleantech. Despite regulatory uncertainties, 8% of UHNIs have invested in cryptocurrencies. Moreover, nearly 25% of Indian UHNIs are expanding their portfolios abroad, with a strong preference for assets in North America and Europe. To ensure proper management of their wealth, succession planning, and philanthropy, over 40% of UHNIs have established family offices. This reflects a broader trend towards securing and growing their wealth across various avenues for long-term sustainability.
However, remains clear that real estate remains a significant pillar of wealth for India’s high-net-worth and ultra-high-net-worth individuals. Luxury homes have gained more prominence, accounting for 28% of total real estate sales in 2024, a significant jump from just 16% before the pandemic. Cities like Mumbai, Delhi, and Bengaluru continue to attract affluent buyers, while Goa, Alibaug, and Jaipur are becoming popular choices for second homes. The demand for international properties is also on the rise, with about 14% of UHNIs owning properties abroad, particularly in hotspots like Dubai, London, and Singapore. The average investment in international real estate exceeded INR 12 crore ($1.44 million) in 2024. With a growing focus on sustainability, green buildings which are ESG-compliant real estate have captured the interest of affluent buyers.
Luxury Consumption and Lifestyle Trends
When it comes to luxury consumption, India’s affluent are defining new trends. In 2024, more than 37% of Indian HNIs purchased luxury cars, contributing to record sales for high-end brands like Lamborghini, Porsche, and Rolls Royce. Travel has become another key area of expenditure, with UHNIs averaging INR 6 crore ($720,000) annually on bespoke vacations, luxury cruises, and curated experiences. Jewellery and art continue to be highly sought after, with India emerging as the 5th largest market for luxury watches and bespoke jewellery, including brands like Cartier and Patek Philippe. Meanwhile, health and wellness investments are gaining traction, with affluent families opting for wellness-focused real estate, luxury retreats, and personalized healthcare solutions.
The Road Ahead
India’s affluent class is not only growing at an impressive rate but is also steering the trends that are reshaping the country’s economic and social landscape. One of the most exciting developments is the rise of millennial wealth creators. Over 15% of India’s HNIs are under 30, driven by the success of start-up unicorns, IPOs, and tech-driven ventures. This number is projected to rise to 25% by 2030, signaling a major shift in the dynamics of wealth creation. The younger generation is rethinking how wealth is made, not just by inheriting it but by building it from the ground up through innovation and entrepreneurship. As these millennial wealth creators take the lead, India’s financial future looks poised for an even more transformative journey.
Alongside this surge in wealth creators, global mobility and alternate citizenship are becoming an increasingly important part of the story. About 10% of India’s UHNIs secured alternate citizenships in 2024, with popular destinations being Portugal, Malta, and the UAE. These countries offer not just tax benefits but also a chance for easier travel, making them highly attractive to India’s affluent who are looking for a more global lifestyle. This trend reflects a broader shift in how India’s wealthy are positioning themselves on the global stage, ensuring that their wealth and influence extend beyond borders.
Philanthropy, too, is undergoing a significant transformation. Indian UHNIs donated over ₹60,000 crore ($7.2 billion) in 2024, with a strong focus on education, healthcare, and sustainability. This surge in giving is a sign of India’s rising role as a global philanthropist. It’s clear that India’s wealthy are not just accumulating assets for personal gain but are looking to make a broader societal impact, channelling their wealth into causes that will leave a lasting legacy for future generations.
The luxury market in India is also evolving rapidly. In 2024, the market grew by an impressive 12%, prompting global luxury brands like Louis Vuitton, Hermès, and Gucci to take notice and adjust their offerings to cater to Indian preferences. From bespoke couture to experiential services, these brands are recognizing that India’s affluent are not just consumers but connoisseurs of high-end luxury, with a strong appetite for exclusive, tailored experiences. As the demand for luxury grows, it is clear that India is no longer just a market for global brands—it is a key player shaping the future of luxury consumption worldwide.
Health and wellness are fast becoming major areas of investment for India’s wealthy. With an increasing focus on wellness-focused real estate, customized healthcare, and anti-ageing solutions, the wealthy are prioritizing their health and well-being like never before. High-net-worth families are also increasingly investing in preventive healthcare and luxury wellness retreats, understanding that long-term health is an essential component of long-term wealth. This shift in priorities shows just how deeply the affluent are intertwining their lifestyle choices with their financial decisions, investing not only in tangible assets but also in their personal well-being.
Looking ahead, India’s wealthy are carving out an increasingly influential position on the global stage. While India’s UHNI population grew by 6% in 2024, China’s grew by only 2%, signalling India’s rising economic prominence. With philanthropy on the rise, UHNIs donating billions to causes that matter, and a booming luxury market, India is reshaping the global landscape. As the country’s affluent redefine wealth, luxury, and philanthropy, India’s journey toward greater global influence has only just begun.
Comments