India's wealthiest Downturn !!!

A falling stock market, a weak rupee and slowing economic growth have shaved about 60 per cent off the wealth of India's 40 richest people with their net worth plunging to $139 billion from $351 billion a year ago. They're definitely feeling the pain, Everyone's hurting, everyone's in a panic, but the wealthy get noticed more and their concerns get addressed.

An economy that grew at about 9 per cent in the last three years and a six-year bull run on the stock market helped mint new millionaires in Asia's third-largest economy, a rich class who splashed out on luxury cars, yachts and sprawling vacation homes.

India had 123,000 millionaires in 2007 and showed the fastest pace of expansion, but a stock market rout has meant local investors have "notionally lost almost a year's GDP".

High net-worth individuals, are seeking more professional advice now, and also favoring more traditional investment options such as bank deposits. They are seeking safety: fixed deposits are making a huge comeback, and there is also some interest in gold.

India's Billionaires Story

Real estate tycoons such as top Realtor DLF's KP Singh have seen the biggest wealth erosion this year, Forbes noted, while windmill maker Suzlon's founders have lost their billionaire status and flamboyant liquor baron Vijay Mallya, head of the UB Group, has dropped off the Forbes list on losses to his airline.

"Business founders were the worst hit as the largest shareholders," a report suggested, which estimated the top 20 business groups in India have lost about 71 per cent of the value of their listed investments, or $226 billion, this year.

But while the notional value of their wealth has taken a hit, India's billionaires still have plenty of loose change for luxury cars, art and wines.

Sales of cars priced at more than 2 million rupees have remained strong, bucking the slump in overall car sales. Perhaps the wealthy will drive their new cars to the upcoming Osian's auction of modern and contemporary Indian art and craft.

The art market's really dependent on collectors who, irrespective of what is happening in the rest of the world, will still allocate resources to art. That's their first priority."

As for premium spirits, demand is strong. The alcohol industry is probably the most recession-proof.

When times are bad, everyone wants a drink............