Economic Growth Fuels Income Surge

The Indian economy is experiencing a significant upswing, leading to an increase in the number of high-income earners. According to a report by Centrum Institutional Research, the count of individuals earning over ₹10 crore annually has surged by 63% in the past five years, reaching a total of 31,800.

Growing Numbers in High Income Brackets

The report highlights that the number of people earning more than ₹5 crore annually has also risen to 58,200. Furthermore, those making over ₹50 lakh per year have grown by 25% over the same period, indicating a broader trend of wealth accumulation.

Substantial Rise in Aggregate Earnings

The combined earnings of those making over ₹10 crore have skyrocketed by 121%, amounting to ₹38 lakh crore. Similarly, individuals earning more than ₹5 crore have seen their total income increase by 106%, reaching ₹40 lakh crore. This growth reflects the expanding economic landscape in India.

Financial Management Gap

Despite the rising wealth, the report reveals a concerning trend: only 15% of financial assets are managed by professionals in India. In contrast, developed countries see about 75% of financial assets professionally managed, highlighting a significant gap in financial planning.

Future Projections for Wealth Growth

Looking ahead, experts estimate that by 2028, the financial assets of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNWIs) will soar to $2.2 trillion, up from $1.2 trillion in 2023. The number of HNIs and UHNWIs is expected to grow annually by 13-14%, underscoring the rapid wealth creation in the country.

As India continues to thrive economically, understanding the implications of this wealth distribution and management will be crucial for sustainable growth.