Route to prosperity has never been faster: India’s wealthy

India’s high net worth individuals are more confident about increasing speed of wealth creation than those in any other countries globally, a Barclays report titled, 'Origins and Legacy: The Changing Order of Wealth Creation,' suggest. Indian respondents continue to see opportunity from the recent global crisis, with over half saying that their wealth has increased following the economic downturn.

July 03, 2013 9:56 IST | India Infoline News Service
India’s high net worth individuals (HNWIs) are more confident about the increasing speed of wealth creation than those in any other country globally, the latest report in the Barclays Wealth Insights series reveals. 84% of respondents in India agreed that wealth can be created faster today than in the past, which behind Monaco (85%) was the second highest of all countries surveyed, in contrast to respondents in the UK and US at 44% and 31% respectively.

Based on a global survey of more than 2,000 HNWIs comprising entrepreneurs, business leaders and investors, the report, Origins and Legacy: The Changing Order of Wealth Creation, provides an in-depth study into how wealth is now being made, spent and shared across the world. The report navigates the global landscape of wealth, examining how different cultures prepare for the future and consider their legacy through wealth and inheritance planning and philanthropy.

The report also reflects optimism amongst HNWIs in India in the face of the challenging global economic environment. Over half (52%) of those surveyed said that they believed their wealth had increased in the recent economic downturn, behind Qatar at 60% and UAE at 57%. This is in line with findings from the 16th Volume of Wealth Insights which found that 81% of HNWIs in India believed that the global crisis has provided them with opportunities.

Of late, in India, lifestyle and experiences (e.g. travel, social life) has become the most popular use of wealth. 43% of the HNW Indian respondents citied this option as their first choice. In terms of how their wealth is used, HNWIs in India have a tendency to allocate more of their resources to saving and investments than to tangible items or personal property. On average, respondents are more likely to hold their wealth largely in cash savings (28% of wealth), followed by investments (27%). By contrast, just 14% of wealth is held in tangible assets and 16% in personal property.

Satya Narayan Bansal, Chief Executive, Barclays – Wealth and Investment Management, India says: “Indians continue to lead in confidence on their ability to create wealth faster despite the economic downturn and for almost half of them, giving back to society is their sense of duty and responsibility.”  

“This study highlights the fact that Indian families have the desire to indulge in philanthropy. Through our global experience and local understanding, we at Barclays, can help them to create the right structure around their philanthropic ideologies,” says Mr Bansal. 

From source to legacy

As global wealth rises and fortunes are made at a more rapid rate than ever before, the report explores how the challenges facing newly wealthy individuals and families needing to plan for the future have become more acute.

Many HNWIs around the world now prefer to give their money to family and friends and charitable causes in their lifetime rather than as inheritance, seeing their wealth as an ‘enabler’. This trend is especially prevalent in India with one in five (20%) HNWIs planning to give their entire wealth away to family, friends and charity during their lifetime, compared to just 5% in the UK and 4% in the US.

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