Number of rich households up 12% in 2017: Study

Amid concerns on inequality that has been on a steady climb across the globe in general and particularly in India, a study has said the number of the rich has grown at a faster clip than their collective net worth in the country in 2017.

The number of ultra-high net worth households in the country, which represents those with a net worth of over ~250 million or more, has grown 12 per cent to over 16 million in 2017, while their collective net worth grew only 5 per cent at ~153 trillion, said the study.

Findings of the study, commissioned by Kotak Wealth Management, come even as there are increased concerns on rising in equality, especially after a 2017 paper by economists Thomas Piketty and Lucas Chancel, and also a report by the non-profit Oxfam ahead of the World Economic Forum earlier this year.

When asked about the divergence, Kotak’s Wealth Management chief executive, Jaideep Hansraj, said their study had not gone into the inequality aspect. “We've stuck

to what we think where these set of ultra high net worth households would grow to, will spend their monies and where are they growing, rather than us getting into those issues (of inequality),” he told reporters on Tuesday.

The study sees over the next five years, the number of such households will double to 33

million and their net worth will grow to ~352 trillion. He claimed despite negative events like the note ban which has pulled down GDP growth, one of the most important factors determining wealth for the category, its estimates have come out true in the past seven years since it has been coming out with the such reports.