Consultancy firm BCG today said private wealth in the country will more than double to USD 4.5 trillion by 2017,from USD 2 trillion at the end of 2012.
“Private wealth in India is expected to grow at 17.8 per cent annually until 2017 to USD 4.5 trillion,” Boston Consulting Group (BCG) said in its global wealth report released today.
Interestingly,the estimate comes on the same day when official data confirmed that the country’s GDP growth has come to a decade low of 5 per cent in 2012-13.
Private wealth in the country increased by 12.6 per cent over the previous year to USD 2 trillion at the end of 2012,up from USD 1.1 trillion in 2007,according to the BCG report.
As much as 65 per cent or USD 1.3 trillion of the wealth is in the form of cash and deposits,while investments in bonds account for 21 per cent and equities account for 13 per cent,said the report.
By 2017,the proportion of equity investments is expected to go up to 18 per cent,at the expense of cash and deposits which will come down to 61 per cent,it said.
With 164,000 millionaire households,the country ranks 15th in the world in the list of number of millionaire households,which is led by the US followed by Japan and China.
“India offers very good long term opportunity to both domestic and global players,given the growth potential,high rate of household savings,and concerted efforts encouraging higher financial savings,” BCG’s partner and director Ashish Garg said.
He,however,noted that wealth managers in the country face several challenges including that of scale,pricing,business models and ability to attract new customers.