"In late 2001 after the technology bubble,
Merrill Lynch estimated the size of the Indian entrepreneur market in
Silicon Valley alone to comprise 200,000 people, with wealth worth $60
billion."
NEW YORK, 14 May — Despite the volatile markets and the collapse
of the technology bubble, the South Asian community in the United
States continues to grow and build wealth, notes Merrill Lynch.
India's expertise in the information technology and software industries
helped grow the wealth of many non-resident Indians in the U.S., but
also reduced their net worth as the Internet bubble burst.
The Indian community in the U.S. was probably affected by these events
more than any other expatriate community in the world, note some studies.
"However, this is a cohesive and resilient community and many
people have renewed vigor in their business operations and investments,"
said Subha Barry, first vice president and head of Merrill Lynch's
multicultural and diversified business development group.
Ms. Barry said today: "This is one reason why Merrill Lynch
is currently expanding its South Asian wealth management focus, which
has grown strongly in the U.S. over the past few years, around the
globe. Merrill Lynch's multicultural and diversified business development
group aims to make Merrill Lynch the preeminent wealth management
firm among the diverse South Asian market."
There are an estimated 20 million people of Indian origin currently
residing outside India, with the largest populations in Myanmar, the
United States, Malaysia, Saudi Arabia and the United Kingdom, according
to research by the London-based think-tank, the Scorpio Partnership.
"In the U.S., South Asians are the sixth-largest foreign population,
with more than 1.8 million people of Indian origin," said Jyoti
Chopra, director of South Asian business at Merrill Lynch's multicultural
and diversified business development group.
"This was the fastest growing foreign population in the country,
with the number of people of Indian origin surging 105.9% between
1990 and 2000, according to the 2000 census report," Ms. Chopra
said.
"Non-resident Indians continue to contribute strongly to the
national economy, and are estimated to include 200,000 millionaires."
She noted South Asians continue to find success in the U.S. among:
technology entrepreneurs,
physicians and health care providers,
small business owners, and
corporate executives.
"In late 2001 after the technology bubble, Merrill Lynch estimated
the size of the Indian entrepreneur market in Silicon Valley alone
to comprise 200,000 people, with wealth worth $60 billion."
Studies by Merrill Lynch show that the non-resident Indian community
is highly conservative when it comes to business and finance, with
a strong propensity towards saving. "Education and saving for
future education needs, for the next generation, continues to be a
high priority," said Ms. Chopra. "Retirement saving and
planning is also very important, particularly among segments such
as NRI physicians and health care providers."
It is estimated that as much as 90% of Indian business is family
owned, making for complex inheritance planning. "Accordingly,
alongside investment management advice, we provide the full range
of estate planning services to accommodate the wealth distribution
from one generation to another. Indian families tend to be large hence
this service is almost an integral part of our investment advisory
conversations."
Ms. Chopra noted an increasing number of South Asian clients are
also seeking more comprehensive and integrated financial services.
"They increasingly want a single point of contact for all their
financial needs, be it mortgages, business loans, credit cards, investment,
insurance, banking or something else. This is one of the reasons we
developed Total MerrillSM. With Total Merrill clients can choose to
organize all, or components, of their financial life — from everyday
cash management to long-term investments at Merrill Lynch."
She added: "Another of the differences we bring to a non-resident
Indian investor is a coordinated effort with our partners in India,
DSPML, to provide access to the Indian market. This allows NRIs, who
view India as an investment opportunity, to come to us for investment
product and services from the Indian market, as well as the U.S. markets
— providing a one-stop shop offering global resources coupled
with local expertise in both markets."
Recently, a change in Indian Government policy has made it easier
for non-resident Indians to repatriate their wealth back to India
from overseas. Bank deposits by non-residents in India rose 45% or
$2.5 billion to $27.7 billion in the nine months since 30 June 2002,
she noted.
Merrill Lynch's Global Private Client group is one of the world's
preeminent private wealth management and advisory services. With an
international presence, its financial consultants combine world-class
global resources with local expertise and experience to add value
to their clients' wealth management. This individual-focused approach
provides clients with personalized service, innovative products and
customized solutions.