The overwhelming mandate for the Narendra Modi government has enthused analysts about the prospects of a revival in Indian economy. Now, they say that the number of dollar millionaires in India is also set to soar as higher growth would help to create more wealth.
WealthInsight in a report forecasts that the number of Indian millionaires is expected to reach 358,057 individuals by 2018, a growth rate of 34.2 per cent. The report also sees that the wealth of these dollar millionaires will increase by 43.7 per cent during the period.
WealthInsight, a company which tracks the world's rich, defines 'millionaires' otherwise known as 'high net worth individuals' or 'HNWIs' as individuals with net assets of $1 million or more excluding their primary residences.
WealthInsight analyst Tom Carlisle says Prime Minister Narendra Modi is "expected to revolutionise India's prospects regarding greater job opportunities, economic growth and better infrastructure which will increase wealth creation within India."
Mr Carlisle expects the Narendra Modi government to" significantly increase the level of foreign investment in banking, insurance and construction. This will create greater opportunities for wealth and increase the low GDP level that has stunted domestic investment within India."
The new government's focus on infrastructure will help to create more opportunities in trade and commerce, says WealthInsight. "One of the main areas to be addressed is the creation of a high speed rail network that will connect 26 major cities throughout India. New infrastructure investment will provide increased opportunities in interconnecting trade and partnerships, paving the way for new sources of wealth," Mr Carlisle says.
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