New billionaires' crop shows India’s potential to become global economic power

New Delhi: As India produces one new billionaire every five days on average, economists on Friday said this is because more new companies are being registered, startups are taking the IPO route and traditional firms are becoming more and more formal amid a booming economy, reflecting the country's potential to become a global economic power soon.

The country now has a record number of 334 billionaires -- up 75 compared to last year, according to the ‘2024 Hurun India Rich List’.

Mitali Nikore, economist and founder of Nikore Associates, told IANS that new companies are being formed, more startup founders are taking the IPO route, traditional firms are becoming more and more formal and Family Offices being registered are some of the contributing factors that show a surge in billionaires from India.

Arsh Mogre, an economist (Institutional Equities) at Prabhudas Lilladher, said that India’s rapid economic growth is creating billionaires at an unprecedented pace. "This is a reflection of the country’s dynamic entrepreneurial spirit. This also highlights key opportunities in the key sectors such as technology, pharmaceuticals and renewable energy, and reflects India’s potential to become a global economic power soon," Mogre told IANS.

Aman Aggarwal, a renowned economist, said that the increase in the number of billionaires is helping the government in terms of generating more revenue in the form of taxes. "There are various surcharges that one has to pay if the income is more than Rs 50 lakh or Rs 1 crore per annum, in addition to the 30 per cent tax which one has to pay. Moreover, such rich lists comprise the net worth of individuals which is created as per their shares in different companies on the market value during the listing period, which tend to change as shareholding patterns change over time," Aggarwal told IANS.

A record 1,539 Indians (up by 220) across 134 cities now have Rs 1,000 crore wealth on average -- a 150 per cent increase from seven years ago -- from family-run businesses and startup founders to private equity investors, angel investors, next-generation leaders, film stars and more. Nearly 70 per cent of the list represents a combined wealth of close to 1.5 trillion dollars -- more than one-third of India’s GDP is on the cusp of intergenerational transition. Additionally, 64 per cent of the new entrants this year are self-made individuals.