Outlook 2025: India's Wealth Revolution
Lighthouse Canton
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How tier 2 and tier 3 cities, technology, and HNWIs will shape 2025
The wealth management industry in India is poised for significant shifts as 2025 approaches, according to Sumegh B. , CEO for India at Lighthouse Canton , who spoke with LC IDEAs: Views & Insights in a recent conversation on the themes shaping 2025.
Bhatia provided an overview of key themes driving the transformation of the asset and wealth management in the country, particularly the burgeoning high net worth individual (HNWI) and ultra-high-net-worth individual (UHNWI) segments.
THE RISING TIDE
"India's wealth landscape is undergoing a seismic shift, with rapid growth in both the HNWI and UHNWI segments," observed Bhatia. He explained that while UHNWIs—those with net worth exceeding USD 30 million—have traditionally been the focal point for wealth management firms, the burgeoning HNWI segment, comprising individuals with net worths between USD 1 million and USD 30 million, is now gaining momentum.
Bhatia noted, "The HNWI segment constitutes only 0.99% of the Indian population, while the UHNWI segment makes up just 0.02%. However, these numbers are growing rapidly."?
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According to Knight Frank’s flagship study, ‘The Wealth Report 2024’, the number of ultra-rich Indians will rise by 50.1% to 19,908 in 2028 from 13,263 in 2023. This is the highest growth for any country in the number of UHNWIs.
This rapid growth ( highlighted in the numbers above) underscores a key trend in India’s wealth landscape. As HNWIs accumulate and grow their wealth, their financial needs are becoming increasingly sophisticated, requiring access to solutions that not only preserve and grow wealth but also support their transition into the UHNWI segment. Additionally, as more Indian cities emerge as wealth hubs, catering to this segment will require wider distribution networks and a deeper understanding of these evolving priorities.
“India’s wealth management ecosystem is at a turning point,” Bhatia observed. “ Wealth managers who align with these trends and offer a personalised, forward-looking approach stand to capture the growing demand.”
The growth is across both UHNWI and HNWI and the numbers again tell the story.? Data from Knight Frank indicates a sharp rise in affluence: the number of individuals filing income tax returns for earnings between ?50 lakh and ?1 crore has quadrupled in recent years. This growing demographic is reshaping the financial services sector, driving innovation in wealth management strategies and solutions.