340,000 Indians among top 1% global rich: Credit Suisse
HIGH RISE Report, however, notes India’s rise in household debt, estimated at nearly 20% INDIA IS EXPECTED TO GROW ITS WEALTH AND ADD $2.1 TRILLION, AN INCREASE OF 42%, IN JUST FIVE YEARS. TOTAL WEALTH INCREASED FOURFOLD SINCE 2000,
REACHING $5 TRILLION 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 2000–2017. 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.
Wealth per adult is estimated at $5,980 in mid-2017, dominated by property and other real assets, which make up 86% of estimated household assets. Personal debts are estimated to be only $376, or just 9% of gross assets, when adjustments are made for under-reporting.
“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. While wealth has been rising in India, not everyone has shared in 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”.
“At the other extreme, a small fraction of the population (just 0.5% of adults) has a net worth over $100,000. However, due to India’s large population, it translates into 4.2 million people.”