According to a new report from WealthInsight, Indian millionaires are expected to grow at a strong pace, forecasting a growth rate of 34.2% to reach 358,057 individuals by 2018. Not only will there be more millionaires in the market, the amount they possess will increase by 43.7% to over US$2.0 trillion. WealthInsight Analyst, Tom Carlisle, looks at how India’s newly elected Prime Minister, Narendra Modi, could transform the demographic of India’s millionaire population.
The Bharatiya Janata Party (BJP) has claimed a resounding victory, being the first political party since 1984 to win a majority in parliament. Modi is expected to revolutionise India’s prospects regarding greater job opportunities, economic growth and better infrastructure which will increase wealth creation within India.
As part of Modi’s new reforms, electricity will be provided to all households and businesses. “This type of policy will create further sources of revenue throughout India, with 14.3% of HNWIs earning their wealth in technology and telecommunication”, says WealthInsight analyst Tom Carlisle.
The prime minister showed that he is capable of fulfilling ambitious plans when being mayor of Gujarat, where he provided electricity for all, improved safety for women as well as increased literacy levels. This will have a positive influence on the affluent population in India.
“These political elections are the most influential in India’s short democratic life, with the Nehru-Gandhi dynasty being all but wiped out, only winning 44 seats in parliament. Modi is expected to revolutionise India by providing greater job prospects, opportunities for economic growth and better infrastructure”, says Carlisle.
“A large part of his time as country leader will be to significantly increase the level of foreign investment in banking, insurance and construction. This will create greater opportunities for wealth and increase the low GDP level that has stunted domestic investment within India”, says Carlisle.
“One of the main areas to be addressed is the creation of a high speed rail network that will connect 26 major cities throughout India. New infrastructure investment will provide increased opportunities in interconnecting trade and partnerships, paving the way for new sources of wealth. A skilled workforce is also an area that will receive substantial investment”, says Carlisle. “Literacy rates in India are low, especially amongst women, with a rate of 74.4%.”
However, with the competition in the election being small and Modi having a high level of critics regarding the Muslim catastrophe in Gujarat state in 2002, progression in the Indian economic market might not come as soon as people hope. “A key section of his time in power will be to increase trade with overseas nations and provide the links needed to create wealth domestically”, says Carlisle.
