Mumbai has pipped Beijing to become Asia’s billionaire capital for the first time. Indian billionaires’ cumulative wealth reached US$1 trillion, surpassing China’s average wealth per billionaire (US$3.2 billion vs US$3.8 billion), according to the 2024 Hurun Global Rich List.
This phenomenal rise is mirrored by India’s addition of 94 new billionaires in a single year, surpassing China’s 55 and solidifying India’s position as the second-largest contributor to the global billionaire population.
With 271 billionaires, India is now the third-ranked country globally, surpassing Germany.
While the number of billionaires globally increased by a modest 5 percent, India’s performance stands out. The country witnessed a meteoric rise, adding the second-highest number of new billionaires (94) after the US (109). This surge catapulted India to the third position globally, surpassing Germany and signifying a potential shift in the global economic landscape.
Mukesh Ambani remains Asia’s richest person, but the true story lies in the sheer number of new entrants. With only 24 billionaires experiencing a wealth decline, India boasts a remarkable 247 individuals who saw their wealth increase, far exceeding China’s 241. This robust growth translates to a cumulative wealth surge of 51% in India.
Mumbai itself is a microcosm of India’s success. The city added 27 new billionaires, a stark contrast to Beijing’s mere 6. Mumbai’s overall wealth has skyrocketed by a staggering 47%, dwarfing Beijing’s 28% decline.
The success story of Indian billionaires isn’t limited to established sectors like telecom and energy. The rise of startups, particularly in the booming Artificial Intelligence (AI) space, is a significant contributor. This trend aligns with the global focus on AI, which emerged as the biggest driver of wealth creation, generating over half of all new wealth this year. With a young, tech-savvy population and a growing focus on innovation, India is well-positioned to capitalize on this AI revolution, potentially fueling the creation of even more billionaires in the coming years, noted the report.
What’s driving this billionaire boom?
One of the key factors behind India’s rise is its robust economic performance. Strong stock markets, fueled by investor confidence, have created fertile ground for wealth creation. While China, a traditional economic powerhouse, experienced a decline in its billionaire population, India thrived. This economic optimism is further reflected in the fact that Indian billionaires, on average, hold a higher net worth compared to their Chinese counterparts.
“The 2024 Hurun Global Rich List underscores India’s ascension as a future economic titan, poised to secure its place as the world’s third-largest economy. Surpassing all but the United States, India’s unprecedented billionaire boom propels Mumbai past Beijing, crowning it as Asia’s billionaire epicenter. Yet, as we stand on the brink of revolutions in electric vehicles, space technology, and AI, India’s startup ecosystem is just beginning to unveil its potential. The next decade holds a clear message: overlooking the Indian narrative is a risk no visionary can afford. The Hurun Global Rich List doesn’t just track wealth; it signals a pivotal shift in the global power structure.”, said Anas Rahman Junaid – Founder and Chief Researcher, of Hurun India.
The report said “Mumbai was the fastest-growing billionaire capital in the world, adding 26 in the year and taking it to third in the world and Asia’s billionaire capital. New Delhi broke into the Top 10 for the first time.
The report highlighted the dominance of specific industries in contributing to India’s billionaire boom, with the pharmaceutical sector leading the pack with 39 billionaires, followed by the automobile and auto components industry (27), and the chemicals sector (24).While India’s billionaire population soared, China witnessed a decline. “China had a bad year. HK was down 20%, Shenzhen down 19%, and Shanghai down 7%.” This downturn can be attributed to struggles in the real estate and renewable energy sectors, as well as weak performance in Chinese stock markets.
Overall Trends:
The number of billionaires globally increased by 5% to 3,279.
Total wealth of billionaires grew by 9% to US$15 trillion.
AI was the biggest driver of wealth creation, generating over half of all new wealth.
India’s Performance:
India added the second-highest number of new billionaires (94) after the US (109).
With 271 billionaires, India is now the third-ranked country globally, surpassing Germany.
Mumbai overtook Beijing to become Asia’s billionaire capital for the first time.
Indian billionaires’ cumulative wealth reached US$1 trillion, surpassing China’s average wealth per billionaire (US$3.2 billion vs US$3.8 billion).
Reasons Behind India’s Rise:
Strong economic performance and growing investor confidence.
The success of Indian startups, particularly in telecom, energy, pharma, and AI sectors.
Other interesting points:
Mukesh Ambani remains the richest person in Asia, while Gautam Adani’s wealth grew significantly.
The US regained its position as the city with the most billionaires (New York), followed by London.
Taylor Swift became the youngest self-made woman billionaire at 34.
China is still the world’s Number One when it comes to billionaires.
The article originally appeared on Business Standard.