India to have 4th highest number of billionaires by 2023

India is projected to be home to the fourth highest number of billionaires in the world by 2023, according to a report which said wealth creation will accelerate in the country over the next decade.

The 2014 Wealth Report, an annual global perspective on prime property and wealth by property management firm Knight Frank, projected that the number of billionaires in India will grow by an exponential 98 per cent to 119 in the year 2023 from 60 billionaires last year.

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India will rank fourth after US, China and Russia in 2023 and will have more billionaires than the UK, Germany and France, according to the report.

"Wealth creation in India, the world's third-biggest economy, is also expected to accelerate, with the number of Ultra High Networth Individuals (UHNWIs) forecast to nearly double over the next decade," the report said. 

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"This reflects the more positive outlook for India's economy after 2013 was marked by capital outflows and a sharp devaluation of the rupee. This tough environment for wealth creation and preservation was reflected in the one per cent decline in the number of UHNWIs in the country during the year," it said.

The report said the number of centa-millionaires (those with $100 million in disposable assets) in India is also projected to grow 99 per cent to 761 in 2023 from 383 last year.

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The country will further see an increase of 99 per cent in the number of UHNWIs to 3130 in 2023 from 1576 last year.

The growth of UHNWIs in China and India, coupled with a whopping 144 per cent increase in Indonesia and 166 per cent hike in Vietnam, will help push the total number of UHNWIs in Asia up by 43 per cent to 58,588 by 2023, overtaking the total number in North America.

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The number of billionaires in Asia is also forecast to overtake the number in Europe over the next decade.

Asian cities are also expected to see the fastest growth in the number of ultra wealthy individuals over the next decade.

Mumbai will see the fourth highest rate of growth in its UHNWI population between 2013 and 2023, with this number increasing 126 per cent to 1302 in 2023 from 577 last year.

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Delhi will closely follow Mumbai and will record the fifth highest growth in its UHNWIs population, which will increase 118 per cent from 147 last year to 321 in the next decade, according to the report.

By 2024, Mumbai is also projected to figure in the top 10 global cities, a ranking which it does not currently have, the report said.

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Asian UHNWIs are among the most positive about the effect of the economy on their ability to create wealth.

Around 84 per cent anticipate that global and local economic conditions will be the biggest positive influence on their ability to create wealth over the next five years, the report said.

The report, however, said that residents of the world's key cities should be worried about crime, pollution, daily commute and terrorism.

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Terrorism tends to occur in densely populated cities and New York, London, Moscow and Mumbai are more risky than Beijing, according to the report.

It said that the global response to the financial crisis continues to boost property markets in many parts of the world. Asian markets, led by Jakarta, still lead in terms of price growth.

Locations that were hardest hit by the downturn, like Dubai, Dublin and now Madrid, are also bouncing back strongly.

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"Continued global wealth creation, particularly in emerging markets, has been a key driver for prime property markets. This trend looks set to continue with a forecast increase of 28 per cent in the total number of UHNWIs around the world by 2023," the report said.

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London retains its top spot in 2014 among the most important cities to the world's UHNWI community. New York, however, is set to overtake as the top city for the UHNWI population by 2024.

The report said Middle East, Africa and Latin America are increasingly taking the lead in terms of demand for overseas education, luxury spending and property investment.