Wealth, inequality on rise in India
DISPARITY PERSISTS
PARIS: Although the global economic environment has remained challenging, total global wealth has grown to a new record and has doubled since the year 2000, a report by the Credit Suisse Research Institute said.
Meanwhile, personal wealth in India and China has risen by a factor of 3.1 and 4.6 respectively.
Indians accounted for a quarter of people in the bottom half of wealth distribution. Immense wealth inequality and immense population mean that India also has significant number of members in the top wealth echelons, says the report.
China has very few representatives at the bottom and top of the global wealth distribution but dominates the middle of the section.
Despite recent increases, wealth inequality in China is not high by standards of developing world.
Just 1% of millionaires hold nearly half of all global assets. Since 2008, there has been a 54% rise in number of millionaires and the number of billionaires has more than doubled.
Wealth grew most in North America with Europe a close second. In both regions, capital markets were a key source of wealth growth. In India, capital markets rose by 40%. Over the last few years the company has sold the luxury hotel chain Aman resorts, sold off 17 acres of prime land in Mumbai to Lodha Developers and exited its wind energy projects in Tamil Nadu and Rajasthan.
If it now decides to raise capital by launching new projects in its existing land parcels in Delhi-ncr, it still has the option of raising money through the private equity route.
It may also try and take the FSI (floor space index) route and join hands with another developer, rather than sell its land in NCR, said a real estate expert on the condition of anonymity.
The company might also need to dig deep into its commercial properties put out on rent, analysts said.
“The saving grace in its portfolio are assets that earn annual rentals of more than ₹2,100 crore. It can always — in the worst case scenario — sell these income-producing assets to generate more than ₹20,000 crore, which is equal to their total debt,” said another con sultant.
DLF has about 21 million sq ft of leased assets across the country.