The Economist Intelligence Unit (EIU) has released a report recently. There is a new category of wealthy people identified as ‘New Wealth Builders’ (NWBs).
As per this report, high net worth (HNW) households are those holding financial assets worth more than $2 million (Rs.13 crores; throughout this piece, I’ve assumed $1=Rs.65). This is in addition to a primary residence.
New wealth Builders are those who have (in addition to primary residence), financial assets of $100,000 (Rs.65 lakhs) to $2 million (Rs.13 crores). This category has grown significantly over last 10 years and is expected to grow much in the years to come.
NWBs have created wealth through their profession or business during the last 10 years. Only a small portion (3%) has inherited wealth.
4.8 lakh households in India are classified as NWBs.
We’ve seen in earlier reports that around 2 lakh households in India have net worth of $1 million or more.
We’ve also seen that a household is considered rich if it has financial assets above $100,000 (Rs.65 lakhs) in addition to a primary residence.
There are 300 million households in India, out of which half a million households have wealth more than $100,000. So 0.16% of India is wealthy.
EIU projects India to have 4.9 million NWB households in 2020; with an average wealth of $178,000 (Rs.1.15 crore).
This is very significant as close to 2% of our households would become wealthy by 2020.
I really like to see all of you in the above category.