How to enter India’s 1% Rich Club? Everything you need to know

India's 1% rich: A new report from Knight Frank based on his Wealth Sizing Model, reveals how much wealth is needed to join the top 1% in India and other countries. The report found that the net worth required to join the top 1% in India is $1,75,000 or Rs 1.45 crore. Here is everything you need to know about it. 

What is Knight Frank’s Wealth Sizing Model?

According to the report “The model, created by our data engineering team, measures the size of HNWI, UHNWI and billionaire cohorts in more than 200 countries and territories. In addition, we model the number of HNWIs and UHNWIs at city level for 100 global cities.”

The report further describes the acronyms used:

“HNWI: High-net-worth individual – someone with a net worth of US$1 million or more, including their primary residence.

UHNWI: Ultra-high-net-worth individual – someone with a net worth of US$30 million or more, including their primary residence”

How Much Money is Needed to be in the Top 1% 

According to the Wealth Report 2023, Monaco has the highest net worth threshold to join the top 1% of earners. The report found that the net worth required to join the top 1% in Monaco is US $12.4 million.

This is followed by Switzerland in the second place which requires US $6.6 million to enter the 1% richest list. Australia comes after Switzerland with a threshold of US $5.5 million. 

In Asia, Singapore is the highest entry point that needs US $3.5 million, followed by Hong Kong at the US $3.4 million. 

India comes at the 22nd position with US $1,75,000 or 1.45 Crores.

Source: The Wealth Report 2023

Knight Frank’s report mentions India’s ultra-high-net-worth individuals (UHNWIs), having a net worth of over $30 million are predicted to grow by 58.4% from 12,069 in 2022 to 19,119 individuals in 2027. 

Shishir Baijal, chairman and managing director, Knight Frank India said “India’s hectic development activities in core and non-core sectors has helped accelerate economic growth in recent times. Aligned to that is India’s significant position as a global startup hub creating new wealth,”

What is the reason for the wealth decline last year?

The report reads “Challenging markets meant the majority of UHNWIs saw their wealth decline last year, with their collective wealth falling by 10% (equivalent to US$10.1 trillion)”

“Last year the Ukraine crisis fuelled the European energy crunch and supercharged already surging inflation. As a result, 2022 saw one of the sharpest upward movements in global interest rates in history, leading to economic conditions which Collins English Dictionary neatly dubbed the “permacrisis”.

The gap between rich and poor countries has been rising due to the COVID-19 pandemic and inflation. Flora Harley, Knight Frank’s research team partner said “Growing inequality globally could see a greater focus on this group – particularly in the sighs for greater taxation on assets and even emissions,”