In­dia home to 2,45,000 dol­lar mil­lion­aires

Financial Chronicle - - FRONT PAGE -

IN­DIA’S to­tal house­hold wealth stood at $5 tril­lion while the coun­try is home to 2,45,000 mil­lion­aires, says a Credit Suisse re­port.

The num­ber of ul­tra rich in the coun­try is ex­pected to reach 3,72,000 while the to­tal house­hold in­come is likely to grow by 7.5 per cent an­nu­ally to touch $7.1 tril­lion by 2022, the re­port said.

Ac­cord­ing to the Credit Suisse Global Wealth Re­port, since 2000, wealth in In­dia has grown 9.9 per cent per an­num, faster than the global av­er­age of 6 per cent even when tak­ing into ac­count pop­u­la­tion growth of 2.2 per cent an­nu­ally. More­over, In­dia’s wealth growth of $451 bil­lion rep­re­sents the 8th largest wealth gain glob­ally by a coun­try.

“While wealth has been ris­ing in In­dia, not every­one has shared this growth.

“There is still con­sid­er­able wealth poverty, re­flected in the fact that 92 per cent of the adult pop­u­la­tion has wealth be­low $10,000,” the re­port said. At the other ex­treme, a small frac­tion of the pop­u­la­tion (just 0.5 per cent of adults) has a net worth over $100,000. How­ever, due to In­dia’s large pop­u­la­tion, this trans­lates into 4.2 mil­lion peo­ple.

In­dia has 340,000 adults in the top 1 per cent of global wealth hold­ers, which is a 0.7 per cent share. By our es­ti­mates, the re­port said, 1,820 adults have wealth over $50 mil­lion, and 760 have more than $100 mil­lion. Ac­cord­ing to the re­port, per­sonal wealth in In­dia is dom­i­nated by prop­erty and other real as­sets, which make up 86 per cent of es­ti­mated house­hold as­sets.

Per­sonal debts are es­ti­mated to be just 9 per cent of gross as­sets, over­all house­hold debt as a pro­por­tion of as­sets in In­dia is lower than in most de­vel­oped coun­tries. “Thus, al­though in­debt­ed­ness is a se­vere prob­lem for many poor peo­ple in In­dia, over­all house­hold debt as a pro­por­tion of as­sets in In­dia is lower than in most de­vel­oped coun­tries,” it added.

Ac­cord­ing to the eighth edi­tion of the Global Wealth Re­port, in the year to mid2017, to­tal global wealth rose at a rate of 6.4 per cent, the fastest pace since 2012 and reached $280 tril­lion.

The rise in global wealth re­flected wide­spread gains in eq­uity mar­kets and sim­i­lar rises in non-fi­nan­cial as­sets. The re­port noted fluc­tu­a­tions in as­set prices and ex­change rates ac­count for much of the change in house­hold wealth across re­gions and coun­tries.

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