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.
India
is going through one of the greatest periods of wealth creation --
and destruction -- all at the same time.
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.
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 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 scaleups in the coming years."
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