A new report from New World Wealth and Research & Markets reviews the wealthiest cities in India, the 6th largest wealth market in the world (in terms of total wealth held) after USA, China, Japan, Germany and the UK. Indian locals hold US$8.2 trillion in net assets (or wealth). Around US$3.9 trillion (48%) of this is held by HNWIs. Total wealth refers to the private wealth held by all the individuals living in each city. It includes all their assets (property, cash, equities, business interests) less any liabilities.
Mumbai: Total wealth held in the city amounts to US$950 billion. Mumbai is the economic hub of India. It is also home to the Bombay Stock Exchange (BSE) and the National Stock Exchange. Major industries in the city include: financial services, real estate and media. Notably, Mumbai is the 14th wealthiest city in the world by total wealth.
Delhi: Total wealth held in the city amounts to US$554 billion. Delhi is the largest commercial centre in Northern India. It is also home to a large number of well-established affluent residential neighbourhoods. Major Industries in the city include: construction, retail and manufacturing.
Bangalore: Total wealth held in the city amounts to US$410 billion. Bangalore is known as the “Garden City” and the “Silicon Valley of India”. Major industries in the city include: IT, business process outsourcing and biotechnology. Bangalore is also home to several research and development centres for international companies.
Kolkata: Total wealth held in the city amounts to US$357 billion. Kolkata is the main commercial hub of East India. Major industries in the city include: manufacturing, basic materials, pharmaceuticals and food processing.
Hyderabad: Total wealth held in the city amounts to US$320 billion. Hyderabad has a reputation as the “Pharmaceutical Capital of India”. Major sectors include: pharmaceuticals, IT and business process outsourcing. Notably, Hyderabad contains a large number of special economic zones, which help encourage new business formation.
Pune: Total wealth held in the city amounts to US$236 billion. Pune is located just east of Mumbai. Major industries in the city include: IT and manufacturing (automobiles).
Chennai: Total wealth held in the city amounts to US$185 billion. Chennai is located in South East India on the coast. Major industries in the city include: healthcare, manufacturing (automobiles), financial services and tourism.
Gurgaon: Total wealth held in the city amounts to US$135 billion. Gurgaon is located just south of Delhi. Major sectors in the city include: IT and manufacturing.
In terms of affluent suburbs in top cities, Mumbai has Bandra, Juhu, Goregaon, Parel, Worli, Palm Beach Road. Delhi has Westend Greens, Dera Mandi, Greater Kailash, Lutyens. Kolkata has Ballygunge, and Alipore. For Hyderabad, it is Jubilee Hills, and Banjara Hills. Bangalore has Indiranagar, and Sadashivanagar. Chennai’s wealthy live in Boat Club Road, and Poes Garden. In Pune, Kalyani Nagar, and Koregaon Park are the rich live. Gurgaon has its Golf Course Road. Goa’s affluent live in Nerul, Siridao, Siolim Bardez, Anjuna.
Kochi is a major port city on the south-west coast of India. Major sectors in the city include: basic materials (chemicals, oil & gas), construction and manufacturing.
Chandigarh is the main city of Punjab province in Northern India. Major sectors in the city include: manufacturing (machinery, electricals, automotive) and basic materials.
Surat is one of the fastest growing cities in India (in terms of GDP growth). Major sectors in the city include: diamond cutting, textiles and IT.
Ahmedabad is one of the largest cities in India, population wise. Major sectors include: basic materials (cotton), manufacturing (textiles, automobiles), IT and healthcare (pharmaceuticals).
Visakhapatnam is home to one of the busiest ports in India. Major sectors in the city include: transport, IT and manufacturing.
Goa (state) is a major holiday and retirement destination. It is also home to a large number of wealthy retirees. Notably, people born in Goa are eligible for Portuguese passports as it is a former Portuguese colony.
Jaipur is known as the “Pink City of India”. It is known for its beauty and is a major tourist attraction. Major sectors in the city include: tourism and manufacturing.
Vadodara is one of the big three cities in Gujarat province, along with Ahmedabad and Surat. Major sectors in the city include: petrochemicals, engineering, chemicals, plastics, pharmaceuticals and IT.
The average Indian individual has net assets of approximately US$6,600. There are approximately 330,000 HNWIs living in India, each with net assets of US$1 million or more. There are approximately 20,700 multi-millionaires living in India, each with net assets of US$10 million or more. There are 1,064 centi-millionaires living in India, each with net assets of US$100 million or more. There are 119 billionaires living in India, each with net assets of US$1 billion or more. India has a particularly large number of billionaires – only two counties worldwide have more billionaires than India, namely: USA and China.
At the end of 2017, approximately 19% of Indian HNWI wealth was held offshore. Notably, this percentage has risen significantly over the review period from around 15% in 2007. These holdings are mainly in US$ cash and in US and Asian equities. Some is also invested in foreign property – around 21% of Indian HNWIs own residential property (second homes) abroad. Hotspots for such homes include: London, New York, Singapore, Miami, Dubai and Sydney.
Collectables are a growing segment in India. Collectables include any luxury item that holds its value reasonably well over time. Prominent examples include art and classic cars. The global top-end art market is valued at around US$75 billion. Indian art accounts for around US$1.6 billion of this. Major auction houses in India include: Saffron Art, Christies, Asta Guru, Sothebys and Pundole.
During the review period (2007 – 2017), around 38,000 HNWIs left India to live/work overseas. Most of these individuals went to USA, UAE, UK, Canada, Australia and New Zealand. Some also took advantage of residency programs in Portugal, Cyprus, Malta and the Caribbean. Possible reasons for leaving included: Business opportunities and work transfers, Seeking better standard of living, Safety concerns, and educational opportunities for their children – schools, universities.
New World Wealth says these outflows are not particularly concerning as India is still producing far more new millionaires than it is losing. Also, once the standard of living in India improves, several wealthy people might move back.