3.4 lakh In­di­ans among top 1% global rich, says wealth re­port

Hindustan Times (Gurgaon) - - Nation - Let­ters@hin­dus­tan­times.com n

LON­DON: In­dia has 340,000 peo­ple in the top 1% of global wealth hold­ers ac­count­ing for a 0.7% share, in­clud­ing 1,820 with wealth over $50 mil­lion and 760 hav­ing more than $100 mil­lion, ac­cord­ing to a new global wealth re­port re­leased Tues­day.

The Zurich-based fi­nan­cial ser­vices ma­jor Credit Suisse es­ti­mates there could be 370,000 mil­lion­aires in In­dia in 2022.

Since the fi­nan­cial cri­sis broke in 2008, the re­port says global wealth has grown by 27%. In the 12 months to mid-2017, it grew at a faster pace than in re­cent years, with mean wealth per adult reach­ing a record high.

“The United States con­tin­ued its un­bro­ken spell of gains since the fi­nan­cial cri­sis, bol­stered by strong mar­ket con­di­tions. It added $8.5 tril­lion to the stock of global wealth, which is half of the wealth gen­er­ated glob­ally over the 12 months to mid-2017.”

In per­cent­age terms, In­dia’s stock of house­hold wealth dur­ing the pe­riod grew at 10.1%, al­though its ad­di­tion to to­tal global wealth was lim­ited to $451 bil­lion.

In­dia is no­table, it says, for the rise in house­hold debt, which it es­ti­mates is close to 20%.

In­dia is also ex­pected to grow its wealth very rapidly and add $2.1 tril­lion, which is an in­crease of 42% in just five years. To­tal wealth in In­dia in­creased four­fold be­tween 2000 and 2017, reach­ing $5 tril­lion in 2017.

“De­spite this re­mark­able in­crease and hav­ing four times the pop­u­la­tion of the US, to­tal wealth in In­dia is com­pa­ra­ble to the level for the United States 90 years ago. We ex­pect it to reach $6 tril­lion in real terms by 2022, which is com­pa­ra­ble with the level in the United States in 1936,” the re­port says.

Ac­cord­ing to Credit Suisse’s es­ti­mates, an­nual growth of wealth per adult in In­dian ru­pees av­er­aged 7% over 20002017. Prior to 2008, wealth also rose strongly in US dol­lar terms, from $2,010 in 2000 to $5,020 in 2007. Af­ter fall­ing 26% in 2008, it re­bounded, reach­ing $5,050 in 2010, but since then has risen only 18%, be­ing held back by cur­rency de­pre­ci­a­tion.

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