According to a global wealth report by Boston Consulting Group (BCG), India is poised to significantly drive wealth creation, marking a milestone with approximately USD 590 billion in new financial wealth generated in 2023, its highest increase in history. The report forecasts India to contribute around USD 730 billion annually to regional growth by 2028.

Yashraj Erande, India Leader Financial Services at BCG, highlighted, "China and India together contributed USD 588 billion to global financial wealth in 2023, positioning them as key drivers of wealth creation. India is projected to add approximately USD 730 billion annually to global growth by 2028."

The Asia-Pacific region saw a modest 5.1% growth in financial wealth in 2023, primarily impacted by slower wealth creation in China. However, the report anticipates a substantial uptick through 2028, with Asia expected to contribute nearly 30% of new financial wealth globally.

Global net wealth rebounded with a 4.3% growth in 2023 following a 4% decline in 2022, driven largely by a resurgence in financial markets. Financial wealth, a subset of global net wealth, rose by nearly 7% after the previous year's decline.

Looking forward, the report predicts the creation of USD 92 trillion in financial wealth over the next five years. It also underscores the pivotal role of Generative AI (GenAI) in transforming wealth management, with applications across the entire value chain.

Yashraj Erande added, "The financial wealth market has shown recovery since its 2022 slump, though not yet to the levels seen during 2014-2021. Continued favorable conditions will be crucial for sustained growth in wealth creation."

The report noted strong recoveries in financial wealth in North America and Western Europe in 2023, supported by robust equity markets. North America led with over 50% of new financial wealth, while Western Europe saw a more modest 4.4% increase.

Michael Kahlich, Managing Director and Partner at BCG and co-author of the report, emphasized, "Despite the resurgence in 2023, wealth managers must innovate to capitalize on global wealth growth. A clear digital transformation strategy and leveraging GenAI will be essential to managing costs and enhancing client experiences."

The report highlighted significant growth dynamics in the United Arab Emirates (UAE), now the seventh-largest booking center globally and poised to surpass the Channel Islands and Isle of Man by 2028. Hong Kong's ascent as a global financial hub faced temporary setbacks due to reduced Chinese inflows, potentially paving the way for Singapore to challenge its long-term dominance.

Switzerland retains its status as the largest global booking center, growing steadily at 4.8%, yet faces slower growth compared to emerging centers like Singapore, the UAE, and the US. This trend reflects increased demand for geographic diversification, driven by burgeoning wealth in Middle Eastern and Asian markets.

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