How to Become Millionaire in India in 2025

Becoming a millionaire in India is no longer just a dream or a Google search. It’s fast becoming a reality for lakhs of Indians from all walks of life. As per the Credit Suisse Global Wealth Report 2024, one new Indian becomes a millionaire every 30 minutes. And it’s not just businessmen or celebrities ordinary people are building crores in net worth through the right skills, smart investments, and disciplined financial planning.

In this blog, we’ll break down how to become millionaire in India in a few simple steps. We’ll also discuss the millionaire mindset and income sources you can explore.

Who Is a Millionaire in India?

When someone asks "how to become millionaire in India," the first step is to understand how much wealth qualifies a person as a "millionaire" in the Indian context.

• International Definition: Worldwide, "Millionaire" means someone whose net worth is $1 million or more, which is approximately Rs. 8.3 crores as of June 2025.

• Reality in India: Most people in India are generally considered 'millionaires' or 'crorepatis' if they have a net worth of Rs. 1 crore or more. This figure is a major financial milestone considering India's economic structure, range of expenses, and lifestyle.

• Meaning of Net Worth: Net worth is simply the amount of money you have after deducting all your debts and liabilities from your total assets (such as home, investments, and savings), and that is your net worth.

In today’s times, when inflation is rising and lifestyle costs are also going up, achieving a net worth of Rs. 1 crore is not just a financial achievement but is also considered the first big step towards financial security and freedom.

The Millionaire Mindset in India

In a country like India, where most people consider financial security as success, real wealth begins with a different mindset. The path to becoming a millionaire is not just about earning more but is also related to thinking and habits.

Delayed Gratification: 

Rich people are experts in one habit of Delayed Gratification, that is, investing money for a long time instead of spending it immediately. A famous research "Marshmallow Test" has proved that people who can postpone today's happiness are more successful in the future. The same habit applies in the world of investment as well. Trading in the greed of quick returns is a risk, but people who invest in SIP or shares for a long time often become millionaires.

Middle-Class Thinking and Misconceptions Related to Investment

The Indian middle class still has a fear of investing. Most people keep their money in fixed deposits or savings accounts because they find it safe. However, traditional schemes like FDs cannot beat inflation. For example, while FDs give around 6% annual interest, a good equity mutual fund can give a return of up to 12-15%. This difference can gradually turn the investment into a property worth crores. That is why not just saving, smart investing is also important.

Traditional Indian Habits: Some Helpful, Some Harmful

Investing in gold and land is considered safe in Indian culture. Although these assets are good for wealth preservation, but not for wealth creation. Gold usually gives 7-8% return and there is no cash flow in it. Talking about real estate, in today's time its return is less than Mutual Funds or Index Funds in many cities and there is also a problem of liquidity in it. Moreover, people are afraid of the stock market because they think it is like gambling, but investing with the right information and patience can actually make you a millionaire.

So if you are wondering how to become a millionaire with no money the first step is to change your mindset. Every successful investor has started with small steps the only difference is that they did not stop moving in the right direction.

The Math Behind Becoming a Millionaire

In India, being a crorepati means having a net worth of at least Rs. 1 crore. That is, the combined value of all your assets (such as mutual funds, stocks, property, FDs) should be Rs. 1 crore or more, minus your liabilities (debts, etc.).

Now the question is how to reach Rs. 1 crore and in how much time? The answer is the power of regular investing and compounding.

How much money to become a millionaire in India?

Suppose you are a middle-class working person and you invest a certain amount every month in a mutual fund SIP. Below are some real-world scenarios based on the SIP calculator (based on projected returns for 2024)

If a person invests Rs. 10,000 every month in SIP at the age of 25 and gets an annual return of 12%, then his investment can reach close to Rs. 1 crore in 20 years. This is the power of compounding, which gives exponential growth over time.

Other Investment Options to Become a Millionaire in India

1. Fixed Deposit (FD): 

Fixed Deposit is still considered the “safest” investment in India, especially among the elderly and middle-class families. Today, in 2025, the interest rates of SBI and other major banks are around 6%. Although it gives a guaranteed return, when you deduct tax and inflation from it, the real return is only 3–4%.

Example: If you invest Rs. 10 lakh in FD and get 6% interest, then the interest for the year will be Rs. 60,000. But if your tax slab is 20%, then about Rs. 12,000 tax will be deducted and inflation (say 5–6%) will reduce your purchasing power further. That is, the money increased, but the actual value did not increase that much.

To get the most out of FDs, it's important to compare rates. Here are some of the best banks for fixed deposits worth exploring.

2. Public Provident Fund (PPF): 

PPF is a great long-term scheme of the Government of India that gives you a tax-free interest of 7.1% (FY25 rates). Its biggest feature is that it is completely safe and the interest earned in it is completely tax-free. But it has a big limitation – you can deposit a maximum of Rs. 1.5 lakh in a year and its lock-in period is 15 years. That is, if you want to become a millionaire, use PPF as a supportive part, not as a primary wealth creator.

3. Equity Mutual Funds: 

A real example of disciplined investing. If someone asks you, “How to become millionaire in India with no business or high income,” then the simplest answer would be to invest in mutual funds through SIP. Equity-oriented mutual funds, such as Flexi Cap or Large Cap Funds, have historically delivered annualized returns of 12%–15% (source: AMFI, Value Research 10+ years data). Mutual fund SIPs give you the advantage of compounding and also professional fund managers pick the companies on your behalf. They are regulated (by SEBI and AMFI) and you can start investing from a very small amount – Rs. 500.

4. Direct Stocks: 

If you understand the stock market and can pick the right companies, direct stocks can give you even better returns than mutual funds, in some cases up to 18–20% annually.

But remember, this is possible only if you have the right knowledge, patience, and market discipline. Emotional decisions, panic selling, or herd mentality can cause you huge losses. So if you are a beginner, move slowly into direct stocks.

5. Real Estate: 

Real estate is still considered by many people in India as “property”. But in today’s times, its returns are much less than mutual funds.

Today, the rental yield in metro cities is only 2–3%, and property prices are also not rising as fast as before. Also, there are problems like registration costs, maintenance, tax, and liquidity.

If you are buying a house for self-use, then it is a different matter — but from an investment point of view, real estate is no longer that attractive, especially for small investors.

Top Ways to Become a Millionaire in India

India’s economic landscape has changed. Wealth is no longer created by inheritance or a high salary. Today, there is a system in place where even an ordinary person can become a millionaire with structured hard work and smart money management. Let’s take a look at the key paths that have led millions of Indians to financial freedom.

1) Build a Strong Income Through Jobs and Side Hustles

A steady salary is a good foundation, but it alone is not enough to make a financial leap. In today’s digital age, creating an alternate stream of money parallel to a career is an effective strategy. Lakhs of people are earning an additional Rs. 20,000–Rs. 80,000 per month through weekend or part-time jobs in sectors like content writing, coding, video editing, and digital marketing. Converting this income into investment has become the most practical way of wealth creation.

It’s not just about money, your skillset and time management can also multiply your earning potential.

2) Start a Business or Digital Venture:

 In today’s India, digital-first businesses that started on a small scale are becoming national-level brands. Building a website, selling a niche product, or delivering a local service online all have low costs, limited resources, but unlimited scalability.

According to 2024–25 reports, D2C (Direct-to-Consumer) models have recorded more than 30% annual growth over 3 years. With models like dropshipping, niche consultancy, and digital courses, people are building sustainable and scalable businesses in just 2–3 years. This path is for those who want to convert active income into system-based income.

3) Invest in Equities for Long-Term Capital Growth: 

Now, investing is not limited to the stock market, but there are diverse options like Mutual Funds, Index Funds, and REITs. Small investments can be started in Mutual Funds through SIP, which creates permanent wealth through long-term compounding.

4) Diversify with Real Estate and Gold: 

While equities are the main engine of wealth creation, real estate and gold are strategically included in the portfolio. Property appreciation rates in Tier-2 cities have been around 6–8% in some areas as of early 2025. Gold has delivered an average return of close to 10% annually over the last 5 years. While both these options are limited in terms of liquidity and growth, they play an important role in a balanced portfolio especially when investors want asset safety and hedge structure.

How to Become Millionaire in India – Step-by-Step Blueprint

1. Clearly Define Goals and Timelines: 

The financial journey begins with a concrete and measurable goal. Unless a certain timeline is defined to reach a certain net worth, planning becomes meaningless. Fixing a timeline makes the investment and savings direction clear.

2. Understand Spending Priorities and Increase Savings:

 The foundation of wealth creation rests on savings. For this, it is important to analyze expenses so that the lifestyle can be balanced according to income. Identification and control of non-essential expenses generate the required capital for investment.

3. Start Investing On Time and Maintain Regularity: 

The sooner one starts investing, the more effectively the capital grows. Capital can be increased systematically through regular monthly investments. Compounding interest over time accelerates the pace of investment manifold.

4. Develop More Than One Source of Income: 

Depending on a single income is risky. Additional income sources can increase the overall cash flow, thereby increasing the investment capacity. This strategy helps in both financial stability and wealth creation.

5. Convert Profits Into a Habit of Reinvesting:

 The capital earned should be used for long-term construction rather than immediate consumption. Reinvesting the profits earned from capital increases the size of the portfolio rapidly and accumulates wealth in the long run.

6. Do Not Ignore Risk Management: 

Safety is as important as growth in financial planning. Elements such as emergency funds, health insurance, and life insurance maintain the stability of the portfolio and provide financial protection against unexpected situations.

7. Scaling Income and Investments Over Time: 

Once a habit of stable income and investment is developed, it should be expanded to a larger level. Scaling income leads to faster growth of the portfolio and the goal of wealth creation can be achieved in a relatively short time.

Top Mistakes to Avoid While Aiming to Become a Millionaire

• Falling prey to schemes and frauds in the desire for quick profits: There are many schemes with promises like “Double in 3 months” or “Become a millionaire in a year in crypto”. Investing money in platforms without regulation, understanding and transparency leads directly to fraud.

• Never start financial planning: Many people keep thinking that “It is less now, we will see later.” But in reality, wealth is built only by starting with small amounts and early. If you start late, the investment has to go into catch-up mode, due to which the goals keep getting pushed away.

• Wrong use of credit card and negligence in repaying the loan: If the credit card is not paid on time, the interest rates reach 30–40% per annum. This interest can swallow the returns of any of your investments and create a debt trap.

• Not spending on skill upgrades: Investing in skills and learning is very important to increase income. But many people avoid spending money on themselves, due to which their income remains stuck at the same level for a long time.

• Trading without experience and losses in F&O: Trading in the stock market without skill and research, especially in high-risk segments like futures and options, turns the desire to get rich quickly into a huge loss. It is not a shortcut, but a shortcut to loss.

• The EMI Trap: Taking EMIs for more expensive gadgets, vehicles or lifestyle expenses than necessary eats away at future savings. This suppresses cash flow and leaves nothing for investment.

• Not keeping track of income and expenses: Not keeping a clear track of where the money is coming from and where it is going is the biggest obstacle in financial planning. Today, with the help of Indian apps like CRED, INDmoney, and Walnut, this task has become very easy.

• Ignoring tax, inflation, and asset allocation: People do not do tax planning, which reduces returns. At the same time, not keeping inflation in mind and depending on only one asset class (like only FD or only gold) becomes an obstacle in long-term wealth creation.

Conclusion

To become rich, you need small but right steps, not a big beginning. It is not just about earning more, it is about managing and growing that money wisely. It is not necessary that you have a salary of lakhs if your thinking is clear, your habits are strong and your investment direction is right, then wealth is created automatically with time. Just do not postpone the beginning. Even by doing little by little, a big fund can be created. And yes, trust your strategy not others.

FAQs

Q1. Can anyone become a millionaire in India with a low income?

Yes, it is absolutely possible if regular savings and the right investments are made.

Q2. How much money is needed to be called a millionaire in India?

Must have a total net worth of at least Rs. 1 Crore.

Q3. Is it possible to become a millionaire in India before 30?

Yes, it is possible with the right planning and an early start.

Q4. Should I invest in the stock market to become rich?

Yes, but with research and long-term thinking.

Q5. Is mutual funds a safe option for wealth creation?

Yes, Mutual Funds through SIP are safe and effective.