World Wealth Report 2023: India’s stock market surged amid global declines, HNWIs grew against trend

The World Wealth Report 2023 published recently by Capgemini highlights a significant decline in the number of High Net Worth Individuals (HNWIs) worldwide. This year's decline in both the number and wealth of HNWIs is the highest recorded in the past decade.

However, amidst this gloomy trend, the report offers positive news for India, emphasising the country's commendable stock market performance.

Key findings of the World Wealth Report 2023

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The report reveals that the wealth of HNWIs dwindled over the past year due to various factors such as geopolitical crises, market downturns, rising living costs, and unexpected inflation. Global economic conditions have been impacted by central banks' increasing interest rates, adding further strain.

The corporate sector has experienced earnings setbacks, particularly affecting technology stocks.

Magnitude of decline in HNWIs’ wealth

According to the report, global HNWIs' wealth declined by 3.6 per centto $83 trillion in 2022, marking the most significant dipbetween 2013 and 2022. Both diversified investment instruments and equity have experienced declines in HNWIs' wealth. Additionally, the number of HNWIs has also decreased by 3.3 per cent, reaching 21.7 million in 2022.

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Notably, the steepest decline was observed in North America. In terms of affluents, North America (46%) and the Asia-Pacific region (32%) account for the largest share of global wealth value and population size.

Untapped potential in affluent segment

Despite holding approximately $27 trillion in assets, representing nearly 32% of total HNWI wealth, about34% of firms are not exploring the potential of this affluent segment, the report reveals.

Positive outlook for India

The report brings good news for India, as the country, along with Indonesia, had a successful year in the Asia Pacific region. India's stock market exhibited notable growth over the past year. The BSE Sensex recorded a year-on-year gain of 4.4%, while Nifty 50 gained 4.3%. Moreover, there has been a relative increase in both the wealth and population of HNWIs in India.

Indian HNWIs thrived: Report

Although the current year has witnessed a decline in HNWIs' wealth, the previous year's Capgemini report, based on 2021 data, highlighted a growth of 10.5% in the HNWI population in India.

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This growth translated to a total of 308 Indians entering the ultra-rich category. Globally, in 2021, the number of HNWIs increased by 7.8% to 22.5 million, with an 8% rise in their overall wealth.

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India's resilience in the face of global HNWI decline demonstrates the country's robust stock market performance and highlights its potential as a favorable destination for wealth creation and investment opportunities.

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