|
When the entire world was reeling under recession, the Indian model of economy showed everyone how robust it is by maintaining a respectable GDP even in the worst of the years of recession. The Indian economy is poised to be the 3rd largest economy in the world by 2035 as revealed in a report by Goldman Sachs. In the past few years there has been almost exponential growth in the numbers of high net worth individuals in the country. In 2000, wealth per adult amounted to nearly $2000, which increased to nearly $4900 by 2010. Although this can be seen as a sign of overall development, but even at this stage people whose net worth is more than $100,000 is 0.4 per cent or nearly 5 million. It is surprising to know that about 13.6 per cent of the nation’s wealth is at the disposal of 0.01 per cent of its population. This is according to World Wealth Report released by Merrill Lynch/Cap Gemini. The report also points that the increase in the number of high net worth individuals increased to a total of approximately 127,000 by 2009. This is an increase of 51% in the annual year of 2008-2009. People like Vinod Khosla, Sabeer Bhatia, Arun Netravali, Aman Mehta, rakesh Gangwal, Amar Bose, Rajat Gupta are the face of Indian entrepreneurship in the modern world. The scenario of wealth creation in India cannot be looked without noticing the tremendous increase in the number of entrepreneurs in India. It can be seen that the major wealth creators have been the budding entrepreneurs. Almost 25 per cent of the new entrants in the market witnessed a meteoric rise in their share prices. The shareholders got richer by as much as 500 per cent. One might need to borrow money from others (financial institutions or individuals) for entering the process of wealth creation. One needs to be careful to invest only in assets that are wealth creating i.e. assets whose value increases with passing time. Private equity firms in India have risen as one of the major lenders to many companies in the last few years. This phenomenon can be attributed to a sluggish stock market and a constant increase in interest on loans by major financial institutions. Private wealth management is becoming very popular in India with the sharp increase in the number of individuals with high net worth in the country. These companies provide expert advice or suggestion regarding management of investment and help in formulating a robust financial plan for the client. As investment by individuals is subject to a number of tax obligations, these companies also offer taxation services in India.
Related Articles -
Entrepreneurs in India, Wealth Creation in India, Private Equity Firms in India, Private Wealth Management,
| 
