Number of Indians earning Rs 10 crore annually sees a staggering 63% rise, Rs 5 crore per annum up 49%: Report
By Sunita Iyer | First Published Sep 17, 2024, 1:44 PM ISTThe report indicates that the number of individuals earning above Rs 10 crore annually has reached approximately 31,800, marking a notable increase in this high-income segment.
India's elite income bracket has experienced a substantial expansion over the past five years, according to a recent report by Centrum Institutional Research, accessed by ANI. The number of Indians earning more than Rs 10 crore annually has surged by an impressive 63% from FY19 to FY24, highlighting a significant growth in the nation's wealth class.
The report indicates that the number of individuals earning above Rs 10 crore annually has reached approximately 31,800, marking a notable increase in this high-income segment. This sharp rise underscores the rapid accumulation of wealth among India's richest individuals.
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Additionally, the report reveals a significant rise in those earning over Rs 5 crore annually, with the count climbing to 58,200, reflecting a 49% growth over the same period. This segment of high earners has seen substantial growth, reinforcing the trend of increasing affluence in India.
Further analysis of income brackets shows that nearly 10 lakh individuals now earn more than Rs 50 lakh annually, representing a 25% increase over the last five years. This upward trajectory in earnings across various high-income segments points to a broader trend of wealth expansion among affluent Indians.
The report highlights the rapid growth in the total income of high earners. For those making over Rs 10 crore annually, the cumulative income surged by a staggering 121% compound annual growth rate (CAGR), reaching Rs 38 lakh crore between FY19 and FY24. Similarly, the total income of individuals earning above Rs 5 crore grew at a CAGR of 106%, amounting to Rs 40 lakh crore. The collective income of those earning more than Rs 50 lakh per annum increased by 64%, totaling Rs 49 lakh crore over the same period.
Despite this impressive growth, the report notes that only 15% of India's financial wealth is professionally managed, a stark contrast to 75% in more advanced economies. This disparity highlights a potential area for development in wealth management practices in India.
Looking to the future, the report projects continued growth in the wealth of High Net Worth Individuals (HNI) and Ultra High Net Worth Individuals (UHNI). It forecasts their combined financial assets will rise from $1.2 trillion in 2023 to $2.2 trillion by 2028. The HNI and UHNI segments are expected to expand at an annual rate of 13-14% from CY2023 to 2028. Additionally, the mass and affluent markets are anticipated to grow in early double digits, reflecting a positive outlook for broader segments of India's wealth spectrum.
This report underscores a significant shift in India's economic landscape, with a growing number of high-income individuals and an accelerating accumulation of wealth among the country’s elite.
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