Mumbai Overtakes Beijing to Become Asia’s New Billionaire Capital, Says Report

Verghese V Joseph –

In a significant shift of economic power, Mumbai, India’s financial capital, has emerged as Asia’s new billionaire capital, surpassing Beijing, according to the latest Hurun Research Institute report. This milestone marks a momentous occasion for Mumbai, solidifying its status as a thriving center for wealth creation and positioning it as a key player in the global billionaire landscape.

The Hurun Research Institute’s ‘360 ONE Wealth Hurun India Rich List 2023’ revealed that Mumbai now boasts an impressive 92 billionaires, surpassing Beijing’s count and securing its position as Asia’s new billionaire capital. This surge in billionaire numbers underscores Mumbai’s rapid economic growth and its attractiveness as a hub for high-net-worth individuals seeking opportunities for wealth creation and investment.

Foreign investment has significantly fueled Mumbai’s economic growth, with the Indian government supporting this through policy changes and investor-friendly measures. In FY 2023-24, India saw $17.96 billion in total FDI, with $11.54 billion in FDI equity. Major contributors were Mauritius, Singapore, the USA, the Netherlands, and Japan. Maharashtra led with 30% of FDI equity inflows. The government’s focus on infrastructure development and initiatives like the National Infrastructure Pipeline have attracted foreign investors, making India a preferred FDI destination. Mumbai’s economic growth is bolstered by FDI, reflecting the city’s appeal and potential for international investment.

Key Findings from the Report

Mumbai registered a net increase of 14 individuals in the billionaire category, showcasing a robust growth trajectory in wealth accumulation.

India added a total of 94 new billionaires in 2023, bringing the country’s total to 271 billionaires, collectively holding a staggering $1 trillion in wealth.

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).

Mumbai emerges as the preferred city for India’s biggest wealth creators, accommodating 25% of the entrants in the list, followed by New Delhi and Bengaluru. Maharashtra and Delhi are the preferred states of residence for individuals in the ‘360 ONE Wealth Hurun India Rich List 2023’, with 391 and 199 entrants, respectively.

Notable Billionaires and Wealth Trends

Reliance Industries chairman Mukesh Ambani, a prominent figure in India’s business landscape, remains the only Indian to rank in the top 10 names in the ‘2024 Hurun Global Rich List’. Despite dropping one rank, Ambani’s wealth surged by 40% to reach $115 billion, solidifying his position as Asia’s richest person.

Gautam Adani, founder of the Adani Group energy conglomerate, witnessed a remarkable $33 billion surge in wealth, attributed to a rally in his companies’ shares, positioning him as a key player in India’s billionaire cohort.

The global rich list, encompassing 3,279 billionaires, witnessed a 5% increase from the previous year. While China still holds the top position with 814 billionaires, India’s rise to the third position with 271 billionaires underscores the country’s growing economic influence and wealth creation potential.

Mumbai’s ascent as Asia’s new billionaire capital signifies a paradigm shift in the region’s economic landscape, with the city emerging as a powerhouse for wealth creation and investment opportunities. The Hurun Research Institute report sheds light on India’s remarkable billionaire boom, driven by key industries and visionary entrepreneurs, positioning the country as a key player in the global billionaire landscape. Mumbai’s rise to prominence underscores the city’s economic vibrancy and potential for continued growth and prosperity in the years to come.

Key Factors to Growth

Several factors have contributed to Mumbai’s rise as Asia’s new billionaire capital:

Robust Economic Performance: Mumbai’s surge in billionaire numbers can be attributed to India’s robust economic performance, which has created a conducive environment for wealth creation and investment opportunities.

Strong Stock Markets: The success of Mumbai as Asia’s new billionaire capital is also linked to the strength of India’s stock markets, which have provided avenues for wealth accumulation and growth.

Success of Startups: India’s rise in the billionaire rankings has been fueled by the success of startups, particularly in sectors like artificial intelligence (AI), showcasing the country’s entrepreneurial spirit and innovation-driven growth.

Industry Dominance: Specific industries have played a significant role in Mumbai’s billionaire surge, with sectors like pharmaceuticals, automobile and auto components, and chemicals leading the pack in contributing to India’s billionaire boom.

Preferred City for Wealth Creators: Mumbai’s status as the preferred city for India’s biggest wealth creators has also been a key factor in its rise as Asia’s new billionaire capital, attracting high-net-worth individuals seeking opportunities for wealth creation and investment.

Overall, Mumbai’s ascent as Asia’s new billionaire capital can be attributed to a combination of economic strength, stock market performance, success in the startup ecosystem, industry dominance, and its appeal as a hub for wealth creation and investment opportunities.

Government Support

The Indian government has supported economic growth in Mumbai through various initiatives and policies aimed at promoting investment, development, and infrastructure in the city. It has recognized the potential of urbanization in driving economic development and has focused on transforming city regions into mega economic growth hubs.

One such initiative is the NITI Aayog’s Growth Hub Program, which aims to support the country in achieving its target of a $35-$45 trillion economy by 2047. Under this program, Mumbai, Surat, and Vishakhapatnam have been identified for the pilot phase, with a focus on developing a high-level roadmap to achieve 300 billion GDP from the current 140 billion for the MMR region.

The government has also recognized the importance of infrastructure development in supporting economic growth. For instance, the Mumbai Metropolitan Region Development Authority (MMRDA) has been established to plan and execute infrastructure projects in the region, including transportation, water supply, and sanitation.

Furthermore, the government has supported the development of specific sectors that contribute to Mumbai’s economic growth. For example, the government has provided support for the growth of the IT and ITES sectors, which have been identified as key drivers of economic growth in Mumbai. The government has also supported the development of the pharmaceutical sector, which is a significant contributor to Mumbai’s economy.

In addition, the government has recognized the importance of workforce development in supporting economic growth. The government has supported initiatives aimed at improving the quality of education and skills training in Mumbai, with a focus on developing a skilled workforce that can support the growth of key sectors.

The government has also focused on improving the regulatory environment and reducing corruption in Mumbai, which are critical for attracting investment and promoting economic growth. It has implemented policies aimed at rationalizing the system of taxation and improving access to market financial resources, which are essential for supporting the growth of businesses in Mumbai.

The Indian government has supported economic growth in Mumbai through various initiatives and policies aimed at promoting investment, development, and infrastructure in the city. The government has recognized the potential of urbanization in driving economic development and has focused on transforming city regions into mega economic growth hubs. The government has also supported the development of specific sectors that contribute to Mumbai’s economic growth, recognized the importance of infrastructure development, workforce development, and improving the regulatory environment in promoting economic growth in Mumbai.

Rise in FDI

Foreign investment has played a significant role in Mumbai’s economic growth, and the Indian government has supported this investment through various policies and initiatives. Mumbai, as the financial capital of India, has attracted a significant share of foreign direct investment (FDI) due to its vast market potential, demographic advantages, and liberalized economic policies.

The Indian government has made significant amendments to FDI policies in recent years to make India more investor-friendly and align with global economic trends.. These changes have opened new avenues for investment in sectors such as defense, civil aviation, and retail, requiring companies to update their operational and compliance frameworks to leverage the new opportunities and ensure compliance.

In the financial year 2023-24, India registered a healthy influx of FDI, with total inflows reaching $17.96 billion, of which $11.54 billion was in the form of FDI equity. The major contributors to this equity inflow included Mauritius (26%), Singapore (23%), the USA (9%), the Netherlands (7%), and Japan (6%). The sectors that attracted the most FDI equity inflow during this period included the Services Sector (16%), Computer Software & Hardware (15%), Trading (6%), Telecommunications (6%), and the Automobile Industry (5%.

Maharashtra leads with 30% of the total FDI equity inflows, followed by Karnataka (22%), Gujarat (17%), Delhi (13%), and Tamil Nadu (5%). The government has prioritized infrastructure development through initiatives such as the National Infrastructure Pipeline, which foresees investment in nearly 7,000 projects across various sectors to support the broader goal of becoming a $5 trillion economy by FY 2025.

India’s economic growth, global competitiveness, and ease of doing business have improved, making it a preferred destination for FDI. The country’s demographic dividend, robust infrastructure development, and innovation and technological advancements have also contributed to its position as a fertile ground for FDI opportunities.