The most striking aspect of India's evolving wealth landscape is the rapid growth in affluence. Both the high-net-worth individual (HNW) segment, with wealth between $1 million to $30 million, and the ultra-high-net-worth individual (UHNWI) segment, with wealth exceeding $30 million, have seen their ranks swell significantly. The number of UHNWIs alone is projected to surge by over 50% from 2023 to 2028, the highest growth rate globally. This burgeoning class of wealthy individuals is not only larger but also more financially sophisticated, with increasingly complex investment needs.
Notably, the rise in affluence is not confined to India's megalopolises. Tier 2 and Tier 3 cities are fast becoming hotbeds of wealth creation and financial savvy. These emerging wealth hubs are witnessing growing demand for bespoke wealth management services like investment structuring and global diversification strategies that were previously constrained to India's urban spaces. Wealth managers are recognising the untapped potential in these markets and are expanding their footprint to cater to the rising class of wealthy individuals.
The broader economic landscape in India is experiencing unprecedented dynamism. The liberalization of economic policies has unleashed a wave of entrepreneurship, creating new pathways to wealth creation. This economic renaissance is accompanied by evolving attitudes towards wealth deployment, with affluent Indians increasingly willing to explore diverse investment opportunities and luxury experiences, marking a significant shift from the traditionally conservative approach to wealth management.
Technology is another defining force in India's wealth revolution. The tech-savvy affluent, especially younger generations, are gravitating towards digital assets and new-age investment opportunities. They are also increasingly attuned to the power of digital platforms and social media in shaping narratives around wealth and investing. Wealth managers who can navigate this digital landscape and engage clients on them terms are poised to thrive.
This tech-driven shift is also spurring interest in non-traditional assets. The appeal of alternative investments like venture capital, pre-IPO deals, and structured products is soaring as wealthy individuals seek to diversify their portfolios and capture the upside potential of India's vibrant startup ecosystem and innovation economy. Wealth managers are rising to the occasion, leveraging their global networks and expertise to offer clients access to these coveted opportunities.
Amidst these shifts, risk management has emerged as a key priority for India's wealthy. While India has traditionally been a growth-oriented market, the affluent are increasingly recognising the importance of preserving and protecting their wealth. Conversations around risk-adjusted returns, drawdown management, and portfolio resilience are gaining traction. Wealth managers who can help clients navigate volatility and build all-weather portfolios are distinguishing themselves in this competitive landscape.
Looking ahead, personalisation, transparency, and technology will be the keystones of success in India's wealth management industry. As we stand at the cusp of this wealth revolution, one thing is clear: the future of wealth in India is bright. The confidence of rising affluence, emerging wealth hubs, technological disruption and shifting client expectations is giving birth to a new era of wealth management -- one that is more personal, more transparent and more impactful than ever before. Wealth managers who can adapt and innovate in this dynamic landscape will not only survive but thrive. They will be the architects of India's wealth story, guiding the nation's affluent towards a future of prosperity and purpose. The wealth revolution is here, and its impact will be felt for generations to come.