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- Overview
- Catalyst
- Summary
- Executive Summary
- India's economy is booming, which has resulted in onshore savings and investments balances increasing strongly
- India's wealthy population represents a very attractive market for onshore wealth managers
- Table of Contents
- Table of figures
- Table of tables
- Chapter 2 Market overview
- Introduction
- Economic conditions in India have been favorable, with further room for growth
- Historic GDP growth levels have been strong
- Services accounted for 53% of the country's economic growth
- But the country remains poor
- And average wages are low - one reason for its popularity as an outsourcing hub
- As a result, India's onshore liquid asset market has boomed
- The majority of Indian retail savings and investments are in deposits
- Indian direct equity balances increased strongly
- After declines in 2004-05, mutual fund balances recovered in 2006
- Retail bond balances increased most significantly
- Indian investment tastes are relatively simple, but growing in sophistication
- The majority of Indian savings are held in deposits
- Indians are shifting their attention towards equity investments
- Offshore investments by resident Indians is restricted
- But Non-Resident Indians are an important customer group for onshore providers
- However, the regulatory environment is hindering potential growth
- Foreign players remain restricted in their acquisitions of Indian banks
- The Reserve Bank has tight ownership rules for Indian banks
- Foreign bank regulation to be eased in the future
- Restrictions on portfolio management
- Despite a slowdown in 2004, the Indian affluent population and their onshore liquid assets grew strongly
- There were around 1.2 million wealthy individuals in India in 2006
- Wealthy individuals in India held USD294 billion in onshore liquid assets in 2006
- 2008-9 will be characterized by struggling economies worldwide
- Rising interest rates, excessive borrowing and negative savings rates have combined in a perfect storm that will upend most of the world's economies
- The widespread securitization of loans will compound this problem
- And the US economy is not healthy enough to 'expand' itself out of this market
- Foreign direct investment may also boost the economy, however foreign investors are pulling money out of the US markets
- A continued Treasury sell-off may further depress the dollar and force interest rate hikes ...
- Another major terrorist attack in the US would destabilize the economy further
- Market capitalization will fall worldwide as US stock markets continue their jitters
- India's wealthy population represents a very attractive market for onshore wealth managers
- There will be around 2 million wealthy individuals living in India by 2011
- Wealthy individuals in India will hold over USD510 billion in onshore liquid assets by 2011
- Data
- CHAPTER 2 Competitive Dynamics
- Introduction
- Competitive interest is intensifying
- There have been many entries into India's wealth management space by foreign players in the last few years
- But the local banking and investment companies are well-established
- Public sector banks hold 72% of deposits
- State Bank of India is the largest bank based on total deposits
- Punjab National Bank
- Canara Bank
- ICICI Bank
- HDFC Bank
- Wealth Management operations
- ABN AMRO
- Citibank
- HDFC Bank
- HSBC
- ICICI Bank
- Standard Chartered Bank
- APPENDIX
- Definitions
- Aggregate
- CAGR
- High net worth (HNW)
- Liquid assets
- Liquid asset bands
- Mass affluent
- Mass market
- Non-Resident Indian (NRI)
- Retail
- Methodology
- Global wealth Model
- The UK sub model
- Global sub model (for all other countries)
- Forecasting methodology
- Continuous refinement to the understanding of liquid wealth distribution
- Datamonitor's wealth numbers compared with other wealth numbers
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: Indian annual GDP growth, 2000-2001 to 2006-2007
- Table 2: Contribution to GDP by Industry sector, December 2006
- Table 3: Chinese and Indian GDP per capita, Purchasing Power Parity in USD, 1996-2005
- Table 4: Indian onshore retail liquid asset balances in USDm, 2002-06
- Table 5: Indian onshore retail liquid asset balances in INRm, 2002-06
- Table 6: Market capitalization of the Bombay Stock Exchange, 2002-2006
- Table 7: NRI deposit inflow of commercial banks in India in USDm, year-end March 2002-06
- Table 8: Number of wealthy individuals segmented by liquid asset band, 2002-06
- Table 9: Aggregate onshore liquid assets segmented held by wealthy individuals, by liquid asset band, 2002-6
- Table 10: Aggregate onshore liquid assets segmented held by wealthy individuals, by liquid asset band, 2007-11
- Table 11: Aggregate onshore liquid assets segmented held by wealthy individuals, by liquid asset band, 2007-11
- List of Figures
- Figure 1: India's GDP growth has averaged 8.8% over the last 7 years
- Figure 2: Major components of Indian GDP, December 2006
- Figure 3: India onshore retail savings and investments balances in USDbn, 2002-06
- Figure 4: The market capitalization of the Bombay Stock Exchange increased 58% compounded annually, 2002-06
- Figure 5: The NRI Deposit market is valuable and growing fast
- Figure 6: Wealthy individuals declined slightly in 2004 but recovered by 2006
- Figure 7: Onshore liquid assets of wealthy individuals in India have grown strongly
- Figure 8: The number of wealthy individuals in India is expected to grow 10.5% compound annually from 2007 to 2011.
- Figure 9: Aggregate onshore liquid assets of wealthy Indians will grow 11.0% compound annually from 2007-2011
- Figure 10: State Bank of India controlled 23% of the banking market in 2005-06
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