A tenfold expansion in India’s economy since its opening in the 1990s has spawned new tycoons in fields like technology. Photo credit: The Economic Times

By P R Sanjai and Saritha Rai – The Economic Times

A tenfold expansion in India’s economy since its opening in the 1990s has spawned new tycoons in fields like technology. Photo credit: The Economic Times 

May 08, 2019 – India is going through one of the greatest periods of wealth creation — and destruction — all at the same time.

A tenfold expansion in its economy since its opening in the 1990s has spawned new tycoons in fields like technology

A new breed of self-made entrepreneurs is vaulting into the ranks of the wealthy, offsetting billions lost by debt-burdened industrialists and members of the country’s old dynasties. The changes are set to help India’s ultra-rich population grow at the world’s fastest pace.

The number of billionaires in India more than doubled to 119 between 2013 and 2018, according to Knight Frank.

And the country will lead the global growth in ultrahigh net worth individuals, with its numbers rising 39 percent to 2,697 by 2023, the researcher estimates

It’s a shift shaped partly by a debt-fueled expansion that left businesses from power generation to airlines with $190 billion in soured loans. Over the past few years, Prime Minister Narendra Modi’s government has cracked down on delinquent borrowers, and India’s banks moved to seize their assets, a dramatic change for a country where the wealthy once enjoyed almost complete protection.

While old business clans continue to dominate India’s rich lists, a tenfold expansion in its economy since its opening in the 1990s has spawned new tycoons in fields like technology. The number of billionaires in India more than doubled to 119 between 2013 and 2018, according to Knight Frank. And the country will lead the global growth in ultrahigh net worth individuals, with its numbers rising 39 percent to 2,697 by 2023, the researcher estimates.

“The business environment has improved has improved over the years,” said Charles Dhanaraj, a professor at the Fox School of Business at Temple University in Philadelphia. “The availability of venture capital and private equity has changed the opportunity space for promising businesses. So we should see more of these startups and scale-ups in the coming years.”