Indians’ wealth rises amid coronavirus crisis; Credit Suisse tells how much it may further grow

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Updated: Oct 22, 2020 6:14 PM

The wealth per adult in India rose from $17,300 at the end of the calendar year 2019 to $17,420 at the end-June 2020.

These will be subsumed in the cumulative revised rate effective from July 1, 2021, it added. The DPE also said "no arrears" for the period from October 1, 2020, to June 30, 2021, will be paid.These will be subsumed in the cumulative revised rate effective from July 1, 2021, it added. The DPE also said "no arrears" for the period from October 1, 2020, to June 30, 2021, will be paid.

Indian adults saw an increase of 0.7 per cent in their wealth in the first six months of the calendar year 2020, even as the country went through a prolonged phase of nationwide lockdown. The wealth per adult in India rose from $17,300 at the end of the calendar year 2019 to $17,420 at the end-June 2020, according to the Global Wealth Report 2020 by Credit Suisse. Wealth growth is expected to be strong through the remainder of 2020 and 2021, the report added. The survey estimated that the average wealth in India may rise 5–6 per cent in the full year 2020 and 9 per cent in 2021.

Over the last two decades, India’s wealth has grown impressively, despite a setback in 2008 due to the global financial crisis and some currency fluctuations. While household wealth in India is dominated by property and other real assets, the financial assets have grown over time, now forming 22 per cent of gross assets. With an adjustment for survey underreporting, Credit Suisse said that the average debt was $1,080 at the end of 2019, which is just 6 per cent of gross assets. It has been underlined that overall household debt is relatively low in India although indebtedness is a severe problem for many poor people in the country. 

Also Read: Rural India surprises with job loss amid peak harvesting season in October; labour market stagnates

Meanwhile, the annual growth of wealth per adult averaged 9.7 per cent over 2000–19 using current exchange rates, and 12.1% with constant exchange rates. However, 73 per cent of adults in India had a net worth less than $10,000 at the end of 2019, compared to only 19 per cent in China. Consequently, it was found out that wealth inequality remained quite high in India and there is considerable poverty in the country. On the other hand, a small fraction of the population (2.3 per cent of adults) had a net worth over $0.1 million. Also, India has 9.07 lakh adults in the top 1 per cent of global wealth holders, which is 1.8 per cent share. Further, 4,600 adults are estimated to have wealth of over $50 million.

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