Asia Pacific Wealth Report 2009 by Merrill Lynch Wealth Management and Cap Gemini illustrates the knock on effect of India Inc slow down.

From growth to decline

The number of Indian high net worth individuals dropped by 32% to 84,000 in 2008, by comparison China's dropped 12.6%. The dip contrasts with Indian growth of 23% in 2007, the fastest growth in Asia Pacific that year.

Qualification for this group means an individual has investable assets of at least US$ 1 million, excluding value of residence and possessions.

Decline has been attributed to Sensex and GDP slow down as a result of the global financial crisis. By end of 2008, India high net worth wealth was valued at US$ 310 billion, down 29% on 12 months previous.

Positive outlook

Despite this reverse, the outlook is positive. In a vote of confidence to the long-term growth prospects for India Inc, the report expects high net worth numbers to swell to over 250,000 in the next 10 years.

Indian economy to drive wealth creation

Compared to other countries across Asia Pacific relatively few - 13% versus 22% in Japan - have inherited wealth and only 9% are over 66 years old. The report concludes that this decade of growth will be fueled by a flourishing Indian economy and robust domestic consumption.

Wealth is also expected to extend beyond Indian metros. The report states that India has 80 million middle class households, with only 25 million living in Tier 1 cities. This provides opportunity for high net worth wealth to appear countrywide.

To access the full report click here.