The total household wealth in India rose by a modest 2.6%, while wealth per adult stayed flat at $7,020, primarily on account of recent free fall in rupee against the US dollar.
India is getting richer with the number of millionaires is increasing. During the last 12 months to mid-2018, India created a whopping 7,300 more millionaires, taking the total household wealth to $6 trillion and the total number of millionaires in the country to 3.43 lakh, according to Credit Suisse’s Global Wealth Report 2018.
The total household wealth in India rose by a modest 2.6%, while wealth per adult stayed flat at $7,020, primarily on account of recent free fall in rupee against the US dollar, it added.
Before 2008, India witnessed strong growth in personal wealth which rose from $1,830 in 2000 to $5,020 in 2007. However, after dropping 26% in 2008 due to the financial crisis at that time, it rebounded and grew at an average rate of 7% up to 2018, the report said.
Also, the growth, which has been rising over the years, has not been evenly spread and not everyone has shared this growth. There is still a considerable ‘wealth poverty’ reflected in the fact that 91% of the adult population in the country has wealth below $10,000. On the other side, a small fraction of the population, which 0.6% of adults in the country, has a net worth over $100,000, the report added. Of the total, 3,400 people in India have wealth of over $50 million, and 1,500 of them have more than $100 million of personal wealth each.
The personal wealth of the people in India is mainly dominated by property and other real assets, which constituted to about 91% of the estimated household assets, it added. In the last 12 months to mid-2018, the non-financial assets rose by 4.3%, accounting for all the wealth growth in the country.
Interestingly, India has also emerged to become the home to one of the highest proportions of female billionaires at 18.6% during the period, among the major nations across the world.
According to the Credit Suisse estimates, over the next five years to 2023, the personal wealth in India is expected to rise by 8% per annum to reach $8.8 trillion, and the country could be home to 526,000 millionaires.
Meanwhile, the total global wealth saw a growth of 4.6% or $14 trillion during the period to $317 trillion, completely outpacing the population growth, it said in the report. The US led the chart in global wealth by adding $6.3 trillion during the 12 months period to mid-2018, taking the total wealth to $98 trillion.
China came second with an addition of $2.3 trillion to the total household wealth of $52 trillion. The country is expected to grow by a further $23 trillion over the next five years, taking its share of global wealth from 16 % in 2018 to just above 19% in 2023, the report added.