₹10 crore paycheque: 63% more Indians have nine-figure income now

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ET OnlineLast Updated: Sep 17, 2024, 01:27:00 PM IST

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The number of Indians earning over Rs 10 crore annually has increased by 63% in the last five years, according to a Centrum Institutional Research report. The report also noted significant growth in the income of those earning over Rs 5 crore and Rs 50 lakh annually, highlighting rapid wealth accumulation among rich Indians.

Indians earning over Rs 10 cr per annum up 63 pc, Rs 5 cr per annum up 49 pc: Centrum — Representative image.

The number of Indians earning more than Rs 10 crore annually has seen a remarkable surge, growing by 63 per cent in the last five years, according to a report by Centrum Institutional Research as accessed by ANI.

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This dramatic increase highlights India's growing wealth class, as the report further notes that those earning over Rs 5 crore annually have also risen significantly, reaching 58,200 individuals, marking a 49 per cent growth.

The report reveals that the country now boasts around 31,800 individuals who earn more than Rs 10 crore annually, a striking increase over the last five years, that is FY19-FY24. Furthermore, the number of people earning over Rs 50 lakh annually has jumped by 25 per cent, with nearly 10 lakh individuals falling into this bracket.

"The wealth of rich Indians is growing at a rapid pace; between FY19 and FY24, the number of Indians earning over Rs 50 million grew by 49 per cent to 58,200, while those earning over Rs 100 million increased by 63 per cent to around 31,800," the report stated, underscoring the accelerating accumulation of wealth among the rich.

Alongside the growing number of wealthy individuals, the total income of these high earners has also experienced exponential growth. The cumulative income of those earning more than Rs 10 crore annually surged by a staggering 121 per cent compound annual growth rate (CAGR) between FY19 and FY24, reaching Rs 38 lakh crore.

For those earning over Rs 5 crore, the CAGR stood at 106 per cent, bringing their total income to Rs 40 lakh crore. Meanwhile, the collective income of individuals earning above Rs 50 lakh per annum grew by 64 per cent, amounting to Rs 49 lakh crore over the last five years.

Despite the explosive growth in income and the number of high earners, the report also noted that only 15% of financial wealth in India is professionally managed, compared to 75 per cent in more advanced economies.

Looking ahead, the report projects continued growth in the wealth of India’s High Net Worth Individuals (HNI) and Ultra High Net Worth Individuals (UHNI), forecasting their combined financial assets to increase from $1.2 trillion in 2023 to $2.2 trillion by 2028.

"The HNI and UHNI are predicted to expand by 13-14 per cent annually during CY2023-28. Even the mass and affluent markets are anticipated to grow in early double digits," the report added.

(With ANI inputs)