Penetrating the Indian Wealth Market

Published by: Datamonitor

Published: Jul. 3, 2006 - 66 Pages

Table of Contents

CHAPTER 1 EXECUTIVE SUMMARY

Introduction

What is this report about?

Who is the target reader?

The market opportunity

The Indian market looks to be attractive for wealth management

Economic conditions have been favourable over the last decade

The potential wealthy population is large and growing fast

The wealth management market is still in its early stages

Only in the last 12 months have many competitors begun to show any major interest in the market

The investment/ banking environment is still developing

Customer attitudes to investment are changing, which will help competitors

A regional focus

Wealth differs considerably by region

There are four major states with wealth management potential

There are three further states with good potential

And other states and cities that could merit attention

Future decoded

The wealth management opportunity will continue to grow

Macroeconomic growth will continue

Wealthy individuals will continue to prosper

CHAPTER 2 INTRODUCTION

What is this report about?

Who is the target reader?

How to use this report

CHAPTER 3 THE MARKET OPPORTUNITY

The Indian market looks to be attractive for wealth management

Economic conditions have been favourable over the last decade

Historic growth levels have been high

The Indian economy is more developed than many of its Asian counterparts

The potential wealthy population is large

The total population pool is massive by global comparisons

The number of individuals with more than USD100,000 is growing rapidly

Average affluence of the wealthy population has increased

The wealth management market is still in its early stages

Only in the last 12 months have many competitors begun to show any major interest in the market

Foreign players remain restricted in their acquisitions of Indian banks

Branch networks are not easily expanded

Interest levels are at an all-time high

The number of opportunities is decreasing

The investment/ banking environment is still developing

Restrictions on wealth management and banking products

Limited offshore investment is permitted

The domestic investment markets are developing

Customer attitudes to investment are changing, which will help competitors

Mutual funds and equities are growing in popularity

CHAPTER 4 A REGIONAL FOCUS

Wealth managers need to approach India from a regional perspective

Wealth differs considerably by region

National inequality exists

And regional inequality is very noticeable

There are four major states with wealth management potential

Each state has its own attractions

Savings have grown rapidly in these states

And total affluent liquid assets have grown considerably

There are three further states with good potential

They compare favourably with the four primary states

West Bengal is relatively under-banked

Chandigarh has the highest GDP per capita

Andhra Pradesh benefits from business opportunities

And other states and cities that could merit attention

CHAPTER 5 FUTURE DECODED

The wealth management opportunity will continue to grow

Macroeconomic growth will continue

Wealthy individuals will continue to prosper

Liquid assets will grow at a rate of 11.5% compounded annually over the 2005-2009 period

The number of wealthy individuals will reach 1.1 million by the end of 2009

CHAPTER 6 APPENDIX

Data

Definitions

AAGR

CAGR

Gini index

Liquid assets

Liquid asset bands

Research methodology

The Global Wealth Model

The UK sub model

Asia-Pacific sub model

Forecasting methodology

Datamonitor's wealth numbers compared with others' numbers

Bespoke Wealth Market Sizing

Further reading

Datamonitor Asia-Pacific Wealth Reports

Datamonitor Asia-Pacific Insight Reports

Datamonitor Global Wealth Service: Competitor Tracking

Datamonitor Financial Services Consulting

Asia-Pacific contacts

List of Tables

Table 1: Underlying macroeconomic factors in India, 2005-2009

Table 2: Real Indian GDP growth over the 1996-2006 period

Table 3: GDP - value added of industry sectors, 2004

Table 4: Value of liquid assets owned by Indian affluent individuals, 2001-2005e

Table 5: Number of Indian affluent individuals, 2001-2005e

Table 6: Share of affluent liquid assets and affluent individuals by asset band, 2005e

Table 7: Average savings deposits per capita and GDP per capita by state, 2005

Table 8: Value of retail deposits and growth over the 2001-2005 period by state

Table 9: Wealth market comparison by state, 2005

Table 10: Wealthy population and its growth, comparison by state, 2005

Table 11: Liquid assets owned by Indian affluent individuals, 2005e-2009f

Table 12: Number of Indian affluent individuals, 2005e-2009f

Table 13: Wealth markets that have been modeled using the Global Wealth Model

List of Figures

Figure 1: Total deposits across the four major states have grown rapidly in recent years

Figure 2: Methodology diagram and report structure

Figure 3: India's real GDP growth has averaged 8.4% over the last 6 years

Figure 4: India's services sector is more developed than many of its Asian counterparts and developing economies

Figure 5: India's wealthy population has increased in size rapidly over the last four years

Figure 6: The more affluent the individuals, the larger the share of wealth they own

Figure 7: The two major stock markets have seen strong growth in market capitalization over the last few years, especially when compared to the Shanghai and Shenzhen exchanges

Figure 8: Indian deposit rates have fallen dramatically in recent years

Figure 9: Average savings per capita and GSDP per capita vary dramatically by state

Figure 10: Total deposits across the four states have grown rapidly in recent years

Figure 11: Total retail liquid assets of the four states have grown rapidly at rates in excess of 30% compounded annually over the 2001-2005 period

Figure 12: While Maharashtra is home to the largest number of affluent individuals and also the fastest growing affluent population, Delhi has by far the highest proportion of affluent individuals

Figure 13: It is Delhi's affluent population that has grown most rapidly over the 2001-2005 period

Figure 14: Chandigarh - being a Union Territory and predominantly metropolitan has a high proportion of affluent individuals compared to West Bengal and Andhra Pradesh

Figure 15: Liquid wealth of affluent individuals will grow strongly over the 2005-2009 period

Figure 16: Wealthy individuals will grow in number at an average rate of 13.8% over the 2005-2009 period

Abstract

• Looks at the onshore liquid wealth of mass affluent and high net worth individuals in India and in India's largest and most affluent states.
• Offers access to key statistics providing a clear picture of the scale, composition and direction of the developing landscape on a regional basis.
• Guide to the wealth management landscape in India. Building on the resources and expertise of Datamonitor's Global Wealth Service team

• Find out which states and cities are attractive to wealth managers and why this is so.
• Assess the relative wealth in each of India's seven key states.
• Find out why India is an attractive market and its advantages over other emerging economies.

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