BCG Global Wealth Report 2023: Resetting the Course states that the value of global financial wealth in 2022 dipped for the first time in 15 years, declining by 4% to $255 trillion. Stubborn inflation, rising interest rates, and poor equity market performance took their toll. Despite macroeconomic headwinds, Asia Pacific (excluding Japan) continued to grow, jumping more than 2%, while Japan gained 0.8%.
As far as India is concerned, the report says India has bucked the global headwinds of wealth creation, led by equity markets which have performed better than its global peers last year, leading to 8% increase in financial wealth last year. India (8%) and China (9%) will record the strongest growth rates among leading global markets, which will collectively create $74 trillion in wealth over the next five years.”
India Financial Wealth
India represents 7.5% of the region’s financial wealth in 2022
Financial wealth grew from 2017 to 2022 by 11.5% p.a. to USD 4.2 trillion
Financial wealth is expected to grow by 8.5% p.a. to USD 6.3 trillion by 2027
India Real Assets
India represents 12.8% of the region’s real assets in 2022
Real Assets grew from 2017 to 2022 by 10% p.a. to USD 12.3 trillion
Real Assets are expected to grow by 8.4% p.a. to USD 18.4 trillion by 2027
India Onshore Asset Allocation
Currency & Deposits are the largest asset class and make up 42% of total personal wealth in 2022
Equities & investment funds are expected to grow the fastest with 12.1% p.a.
Life Insurance & Pensions will be 2nd largest asset class in the future
Mayank Jha, Managing Director & Partner, Boston Consulting Group (BCG) said, “India has bucked the global headwinds of wealth creation, led by equity markets which have performed better than its global peers last year, leading to 8% increase in financial wealth last year. Over the last 20 years, wealth in financial assets in India grew at 15% CAGR v/s a global growth rate of 6%. India’s equity markets will continue to be a strong wealth creation opportunity, today representing 24% of financial wealth, but will increase to 28% of all financial assets by 2027. It’s not surprising that India (8%) and China (9%) will record the strongest growth rates among leading global markets, which will collectively create $74 trillion in wealth over the next five years.”
