Over the past decade, global billionaire wealth has seen a significant shift, with India emerging as a key player in wealth creation while China's growth has slowed. The 2024 UBS Billionaire Ambitions Report reveals India's billionaire wealth surged by 42% to over $905 billion. Tech billionaires lead the wealth accumulation, tripling their holdings. India's family-owned enterprises have been crucial in economic growth. The report anticipates a rise in Indian billionaires and highlights a rise in multigenerational wealth and billionaire relocations.
In the last decade, a fascinating shift in billionaire wealth has unfolded globally, with Asia at the forefront of this dynamic change. India, in particular, has emerged as a beacon of prosperity, showcasing remarkable growth in wealth creation. Meanwhile, China, once a powerhouse in billionaire expansion, has experienced a deceleration in its wealth growth trajectory. Shedding light on these contrasting narratives is the 2024 UBS Billionaire Ambitions Report, which delves into the driving forces behind these shifts.
Indian billionaires have witnessed a remarkable surge in wealth, catapulting by an impressive 42% to exceed $905 billion in the previous financial year. This surge has positioned India as the world's third-largest hub for billionaire wealth, trailing only behind the US and China.
On a global scale, billionaire wealth has soared by an astonishing 121% to reach $14 trillion between 2015 and 2024, outpacing the 73% gain observed in the MSCI AC World Index—a key indicator of global equity market well-being. The count of billionaires has risen from 1,757 to 2,682, hitting a peak of 2,686 in 2021.
Despite a slowdown in growth since 2020, with a 1% annual uptick in global billionaire wealth marking a decline from the 10% rate witnessed between 2015 and 2020, regional trends paint a picture of ongoing expansion in the US, EMEA, and select Asian regions like India. In contrast, Chinese billionaire wealth has seen a 16% dip from its 2020 zenith of $2.1 trillion.
The tech sector has been a major driver of wealth accumulation, with tech billionaires tripling their fortunes from $788.9 billion in 2015 to a staggering $2.4 trillion in 2024. This surge is fueled by advancements in generative AI, cybersecurity, fintech, and robotics. Industrial billionaires have also seen a notable rise in wealth, growing from $480.4 billion to $1.3 trillion, thanks to investments in green technology and reshoring initiatives. However, real estate billionaires have lagged behind, facing challenges from China's property adjustments, the pandemic's impact on commercial real estate, and rising interest rates in the US and Europe.
The report highlights the significant growth in the number of Indian billionaires over the past decade, more than doubling to 185, with their combined wealth witnessing a remarkable threefold increase of 263% by the end of April 2024.
India's landscape is characterized by a substantial number of family-owned enterprises, a cornerstone of the country's economic breakthrough. Notably, India boasts one of the highest counts of publicly listed family-owned businesses, many of which span multiple generations. These businesses have been instrumental in wealth creation, particularly in sectors such as pharmaceuticals, fintech, edtech, and food delivery. The report identifies 108 publicly listed family businesses in India, ranking the country third globally in this category. It emphasizes the critical role these family-run enterprises play in propelling economic growth and underscores the impact of generational businesses in India's economic metamorphosis.
Furthermore, the NSE Nifty 500 Index has more than doubled over the past decade, surging by 109% in US dollar terms, aligning with the escalating wealth of billionaire families.
The report commends the exceptional economic growth observed in recent years, attributing it in part to structural reforms introduced by Prime Minister Narendra Modi's National Democratic Alliance government. Factors such as urbanization, digital adoption, manufacturing expansion, and the transition to renewable energy sources are poised to further propel this upward trend. The report anticipates a substantial increase in the number of billionaires in India over the next decade, echoing China's growth trajectory prior to 2020.
While the number of billionaires has surged over the past decade, so too has the complexity of their family dynamics. The report notes a significant rise in the total number of children born to billionaires, from 4,136 in 2015 to an estimated 6,441 in 2024. During this period, the number of billionaires has increased by more than half, from 1,757 to 2,682.
A noteworthy development is the escalation in multigenerational wealth. In 2015, there were 582 billionaires across multiple generations. By 2024, this figure had swelled to 805, with the majority being second-generation billionaires (542), followed by 163 third-generation billionaires and 100 fourth-generation heirs. While this growth is notable, it's essential to acknowledge that not all heirs attain billionaire status.
Regions like the Americas and EMEA exhibit the highest proportions of multigenerational billionaires, with over a third of billionaires falling into this category in each region—36.9% in the Americas and 35.9% in EMEA. In contrast, the APAC region sees just over a quarter of billionaires being multigenerational, at 27.2%. A decline in the number of multigenerational billionaires in China, dropping from 35 in 2015 to 33 in 2024, underscores the challenges faced by families in preserving generational wealth.
In recent years, there has been a notable surge in relocation activity among the ultra-wealthy, triggered in part by the Covid pandemic. By April 2024, 176 billionaires—approximately one in every 15—had opted to relocate. The pandemic has underscored the importance of top-tier healthcare for some, while younger families are increasingly prioritizing access to quality education and secure living environments. Many billionaires are also emphasizing the ease of conducting business, particularly in light of escalating geopolitical risks.
Countries like Switzerland, the UAE, Singapore, and the United States have emerged as sought-after destinations for these relocations. Over the past four years, more than $400 billion in wealth has shifted across borders, with the MEA region attracting the largest share of this capital. As nations vie to shape the industries of the future, the influx of billionaire capital presents a significant investment opportunity.
One US billionaire reflects on this trend, stating, “People are relocating to jurisdictions not just for tax benefits, but also for safety and political stability. I moved with my family to a location that offered the benefits we sought, addressing issues like curbing crime, upholding the rule of law, and fostering a conducive economic climate. Unless these critical aspects are addressed, this trend is likely to persist.”
In essence, the global billionaire landscape is evolving, with Asia, and particularly India, playing an increasingly pivotal role in wealth creation and economic transformation. With a vibrant entrepreneurial spirit, a growing tech sector, and a rich tradition of family-owned enterprises, India is poised for further growth, mirroring the success stories of other economic powerhouses.
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