Indian Entrepreneurs Spend More on Real Estate and Luxury Experiences: HSBC Report 61 per cent of Indian wealthy business owners allocate personal wealth to real estate for their own use compared to 51 per cent globally

Rich Indian entrepreneurs are spending their wealth on luxury residences, goods and experiences as they remain optimistic about their business prospects in the home market and believe their personal wealth will grow, despite geopolitical uncertainty and global macroeconomic headwinds, according to HSBC's Global Entrepreneurial Wealth Report 2024.

HSBC's Global Entrepreneurial Wealth Report 2024 provides a unique insight into the attitudes of wealthy business owners around the world, including spending, investing and earning habits of India's high net worth and ultra-high net worth business owners.

India's entrepreneurs (98 per cent) are the most optimistic across all the markets surveyed about their business prospects and believe their personal wealth will grow due to technological advancements, the current performance of their businesses, future opportunities, consumer trends, their abilities as a business owner and performance of investment portfolios.

The report shows that rich Indian entrepreneurs appreciate luxurious lifestyle and are not shying away from indulging, though improving the situation of their families is a top motivator.

Six out of ten (61 per cent) Indian wealthy business owners allocate personal wealth to real estate for their own use compared to one in two globally (51 per cent). They are more likely to spend money on luxury goods (56 per cent), compared to a global average of 40 per cent and luxury experiences (44 per cent), compared to a global average of 35 per cent. They are less likely to spend money on art or collectibles (14 per cent) compared to 25 per cent globally.

Wealthy Indian entrepreneurs use their wealth predominantly for investment. More than eight out of ten (82 per cent) of India's rich business owners are investing in stocks, bonds and real estate – the highest percentage amongst business owners in ten international markets, the report reveals.

The Indian market remains an attractive place to do business for the nation's entrepreneurs with 75 per cent of them operating domestically. One in three (32 per cent) are not considering doing business in other markets in the next 12 months. Singapore, UAE, the UK and the US are the most popular markets to conduct business in the next 12 months.

They select unemployment, corruption, inflation and taxation as their biggest worries. However, three out of four (75 per cent) feel supported by the government and 86 per cent believe that society values business owners – the highest percentage globally (jointly with UAE).

Commenting on the research findings, Sandeep Batra, Head of Wealth and Personal Banking, HSBC India, said, "The surge in the Indian stock market, strong macroeconomic fundamentals and the rise in the number of India's ultra-high net worth individuals are enabling the wealthy Indian business owners to remain optimistic and turn into big spenders. Besides focusing on investment and spending, Indian entrepreneurs value connections, networks, mentorship and seek to make a positive contribution to society."

On succession, 88 per cent Indian entrepreneurs agreed they want to keep their business in the family to preserve its legacy. Nine out of ten agreed that they trust the next generation to maintain their values and culture, but nearly one in two (47 per cent) have not yet made succession plans and a similar percentage (48 per cent) worry about finding a suitable successor.

Majority of Indian entrepreneurs are globally mobile and six out of ten (61 per cent) are considering a personal move in the next 12 months, with Singapore, UAE and the US the most popular destinations. Two in three (64 per cent) are considering moving personal wealth in the next 12 months, with Singapore and UAE the most popular destinations.