Rich Indian biz owners spend more on realty, luxury goods than global peers

Indian entrepreneurs remain highly optimistic about their business prospects, with 98% believing their wealth will grow despite global geopolitical uncertainty and macroeconomic challenges, according to HSBC’s ‘Global Entrepreneurial Wealth Report 2024’. The report highlights that Indian High Net Worth (HNW), and Ultra High Net Worth (UHNW) business owners continue to invest heavily in luxury residences, goods, and experiences, with 61% allocating personal wealth to real estate for their use significantly higher than the global average of 51%. Furthermore, 56% invest in luxury goods and 44% in luxury experiences, compared to global averages of 40% and 35%, respectively.

Based on research conducted by Ipsos UK, the survey surveyed 1,798 business owners with at least US$ 2 million (Rs. 17 crore) in investable assets across markets, including India, France, Hong Kong, and the US. It also revealed that over 80% of Indian entrepreneurs invest in stocks, bonds, and real estate, the highest percentage among the 10 international markets surveyed. Despite unemployment, corruption, inflation, and taxation concerns, 75% feel supported by the government. Regarding business expansion, 75% operate within India, and 32% are not planning to expand into other markets. Additionally, 88% wish to keep their business within the family, with succession planning and finding a suitable successor being a key challenge for 47%.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.