Centrum Wealth CEO Sandeep Das says Tier-III India is creating millionaires faster than metros. The shift redefines where wealth is built and which stocks benefit.
Tier-III cities in India are generating millionaires faster than the top metros, according to Sandeep Das, CEO of Centrum Wealth.
Das said shifting economic activity and lower operating costs are driving wealth creation in smaller towns. Entrepreneurs in these regions are building businesses with thinner capital requirements and faster break-even timelines compared to their metro counterparts. The result is a growing number of high-net-worth individuals outside the traditional financial hubs of Mumbai, Delhi, and Bengaluru.
The trend is visible in the data. Centrum Wealth's client-accretion numbers show a disproportionate share of new million-dollar-plus portfolios originating from cities with populations under 500,000. Das attributed the shift to digital infrastructure that lets businesses operate from anywhere, eliminating the need for a metro address.
HDFC Bank, Infosys, and Wipro – three companies with deep India exposure – have Alpha Scores of 47 (Mixed), 57 (Moderate), and 46 (Mixed) respectively on AlphaScala's proprietary model. The bank and the two IT firms all stand to benefit if domestic consumption and corporate borrowing in smaller cities accelerate.
The real estate uplift is already priced into some stocks. Developers focused on the affordable and mid-income housing segments in Tier-II and Tier-III markets have seen valuation multiples expand over the past six quarters. Das expects the wealth effect from these cities to sustain demand for listed financial-services and consumer-discretionary names over the next 18–24 months.
Das's call runs counter to the narrative that India's wealth is concentrated in the top seven cities. The data now suggests the distribution is spreading faster than most analysts model.
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