Penetrating the Indian Wealth Market

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
  • Bespoke Wealth Market Sizing
  • Further reading
  • 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