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India added 7300 millionaires in a year, 91 percent have less than Rs7,30,000 wealth

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India added 7300 millionaires in a year, 91 percent have less than Rs7,30,000 wealth

India added 7,300 more millionaires in 12 months to mid-2018, taking the total number of dollar-millionaires to 343,000, says the latest Credit Suisse Research Institute’s 2018 Global Wealth Report.

However, the wealth per adult stayed flat at $ 7,020 (around Rs 515,970) as against $47,810 in China (Rs 35.14 lakh), says the report.

The term wealth is defined as the value of financial assets (such as stocks and fixed interest instruments) plus real assets (such as property and gold) owned by the households, minus their debts.

Interestingly, personal wealth in India was dominated by property and other real assets, which make up 91 percent of estimated household assets. Over the 12 months, non-financial assets grew by 4.3 percent, accounting for all of the wealth growth in India.

House-price movements are a proxy for the non-financial component of household assets, which reached a high of 9 percent for India.

India’s wealth has been rising since the turn of the century, with the annual growth of wealth per adult averaging at 8 per cent over 2000–18, the report says.

The report highlights the lopsided growth in India. While the country ranks sixth globally in terms of the ultra-rich population — those with wealth in excess of $50 million — it is also one of the highest contributors to the world’s adult population with base-tier wealth (less than $10,000, or about Rs 730,000).

More than 90 per cent of India’s population belongs to the base tier when it comes to the distribution of wealth. In comparison, a third of China and only 28.4 per cent of the US’ adult population belong to this segment.

“Residents of India remain heavily concentrated in the bottom half of the distribution. However, the country’s high wealth inequality and immense population mean that India also has a significant number of members in the top wealth echelons,” says Credit Suisse Global Wealth Report 2018.

The mean wealth in India is estimated at $7,020 per adult, while the median wealth is even lower at $1,289 per adult. India has an adult population of 850 million, second only to China, which has 1,085 million. However, the mean wealth per adult in China is $47,810 and the median wealth is $16,333, the report says.

While 91 per cent of the adult population has wealth below $10,000, the report says, “At the other extreme, a small fraction of the population (0.6 per cent of adults) has a net worth over $100,000. However, owing to India’s large population, this translates into 4.8 million people. The country has 404,000 adults in the top one per cent of global wealth holders, which is a 0.8 per cent share. By our estimates, 3,400 adults have wealth over $50 million, and 1,500 have more than $100 million.”

Prior to 2008, wealth rose strongly from $1,830 in 2000 to $5,020 in 2007. After falling 26 per cent in 2008 (on account of global financial crisis), it rebounded, and grew at an average rate of 7 per cent up to 2018, the report suggests.

“In the 12 months to mid-2018, in USD terms wealth in India grew a modest 2.6 per cent to around $ 6 trillion and wealth per adult stayed flat at $ 7,020, mainly due to currency depreciation of 6 per cent against the dollar,” it said. However, holding exchange rates constant, total wealth grew strongly at 9.7 per cent.

Personal wealth in India is dominated by property and other real assets, which make up 91 per cent of estimated household assets. Notably, it was the growth of non-financial assets by 4.3 per cent over the 12 months that accounted for all of the wealth growth in India. House-price movements are a proxy for the non-financial component of household assets, which reached a high of 9 per cent for India, it said.

“This is typical for developing countries. Personal debts are estimated to be only $840, or just 11 per cent of gross assets, even when adjustments are made for under-reporting. 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,” Credit Suisse says.

At the other extreme, is the affluent class of India – the millionaires, whose numbers, as per Credit Suisse estimates, stood at 343,000 by mid-2018, year-on-year (y-o-y) rise of 7,300. There are 3,400 ultra-high net-worth individuals in India, with wealth over $50 million – the sixth highest in the world, after US, China, Germany, United Kingdom and Japan.

Change in household wealth
Total Wealth Change in total wealth Wealth per adult
2018 2017-18 2017-18 2018 2017-18
USD bn USD bn % USD %
Africa 2,553 108 4.4 4,138 1.5
Asia-Pacific 56,715 929 1.7 48,119 0
China 51,874 2,266 4.6 47,810 4
Europe 85,402 4,432 5.5 1,44,903 5.4
India 5,972 151 2.6 7,024 0.7
Latin America 8,055 (415) (4.9) 18,605 (6.5)
North America 1,06,513 6,486 6.5 3,91,690 5.5
WORLD 3,17,084 13,958 4.6 63,100 3.2
Source: Credit Suisse Global Wealth Report 2018

 

In the next five years to 2023, Credit Suisse estimates the wealth in India to grow by 8 per cent per annum to reach $8.8 trillion. India could be home to 526,000 millionaires, an increase of over 53 per cent or 8.9 per cent per annum.

India had one of the highest proportion of female billionaires at 18.6 per cent. However, the women’s share of wealth in India was significantly lower (between 20-30 per cent) compared to global average of 40 per cent.

GLOBAL VIEW

The aggregate global wealth grew nearly 4.6 per cent, or $14 trillion, in the last 12 months till 2018-mid to $317 trillion – outpacing the growth in population, the Credit Suisse report says. Wealth per adult, as a result, grew at a record 3.2 per cent during this period to $63,100 per adult.

The US contributed most to global wealth, adding $6.3 trillion, taking its total to $98 trillion.

China, according to the report, now has the second largest household wealth, having added $2.3 trillion to reach $52 trillion – and is projected to grow by a further $23 trillion in the next five years, taking its share of global wealth from 16 per cent in 2018 to just above 19 per cent in 2023.

“China is now clearly established in second place in the world wealth hierarchy. Our revised figures suggest that China overtook Japan with respect to the number of ultra-high net worth (UHNW) individuals in 2009, total wealth in 2011, and the number of millionaires in 2014,” the Credit Suisse report says.

Switzerland remains the richest nation in the world in terms of wealth per adult with $530,240 in mid-2018, followed by Australia ($ 411,060), with Singapore ($ 283,120) ranking ninth among major economies.

Global wealth is projected to rise by nearly 26 percent or 4.7 percent per annum over the next five years, reaching $399 trillion by 2023.

Emerging markets wealth will grow at a faster rate of 7.3 percent per annum and will be responsible for 32 percent of the growth, despite accounting for just 21 percent of the current wealth.

Wealth in Asia-Pacific is expected to grow by 5.9 percent per annum or 33.1 percent to reach $153 trillion in 2023.

In Asia-Pacific, the number of millionaires is expected to rise 7.6 percent per annum to reach 15 million in 2023, while the UHNW (ultra high networth wealth) segment is forecast to grow to around 58,300 at 8 percent annually, with 46 percent in China.

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Azerbaijan plane crash sparks speculation of missile strike

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Wreckage of Azerbaijan Airlines plane with visible damage near Aqtau, Kazakhstan

An Azerbaijan Airlines Embraer 190 jet, which crashed near Aqtau in Kazakhstan on Christmas Day, has raised questions about a possible accidental strike by a Russian missile. The flight was en route from Baku to Grozny, Russia, when it went down, killing 38 of the 67 people on board. Among the survivors were two young girls, aged 11 and 16.

Investigation points to missile damage

Aviation and military experts have suggested that the crash may have been caused by a surface-to-air missile or anti-aircraft fire. Reports from media outlets such as the Wall Street Journal and Euronews highlighted shrapnel-like damage to the plane’s fuselage and tail section, consistent with missile strikes.

Footage shared online showed holes resembling shrapnel marks, adding weight to this theory. Matt Borie, Chief Intelligence Officer at Osprey Flight Solutions, told the Journal that the wreckage and security conditions in the region suggest the aircraft may have been hit by anti-aircraft fire.

The crash occurred in an area where Ukrainian drone activity had been reported. Grozny, the destination city, is heavily guarded by Russian anti-aircraft systems due to the ongoing conflict with Ukraine.

Survivors report explosions

Passengers seated in the tail section of the plane, where all survivors were located, reported hearing loud explosions shortly after the plane’s request to land at Grozny airport was denied. Visuals captured the aircraft struggling to maintain altitude before crashing into a field about three kilometers from Aqtau airport.

Azerbaijan Airlines initially attributed the crash to a bird strike but later withdrew this claim. The plane’s black box has been recovered, and investigators will examine flight data and cockpit recordings for further insights.

Potential precedent

If a Russian missile is confirmed as the cause, this would mark the second time a commercial plane has been shot down in the region. In 2014, Malaysian Airlines flight MH-17 was downed by a Russian-made missile over eastern Ukraine, killing all on board.

Official responses

Kazakh officials, including Senate Speaker Maulen Ashimbayev, have urged patience until the investigation concludes, stressing that no party has an interest in concealing information. Kremlin spokesperson Dmitry Peskov condemned premature speculation.

National mourning in Azerbaijan

Azerbaijan President Ilham Aliyev declared a national day of mourning and canceled a planned visit to Russia. In a statement, Aliyev expressed condolences to the victims’ families and called for a thorough investigation.

As the investigation continues, questions remain about the safety of civilian aircraft in a region embroiled in conflict.

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LATEST SPORTS NEWS

Washington Sundar’s inclusion in the fourth Test: Will he make a significant impact for India?

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Washington Sundar

Washington Sundar has been thrust into the spotlight once again as he made his return to India’s playing XI for the fourth Test against Australia at the Melbourne Cricket Ground. His inclusion, which came at the expense of Shubman Gill, has sparked a flurry of discussions, both on social media and among cricket experts, about his role in the team, his credentials as an all-rounder, and what his performance will mean for India’s chances in the ongoing Border-Gavaskar Trophy.

Sundar, who has previously impressed with his all-round abilities, has had a tumultuous journey with the Indian cricket team, especially in the Test format. Known for his ability to bowl tight off-spin and contribute with the bat, Sundar’s most memorable performance came in India’s historic win over Australia in the 2020-21 series. However, it is his return to the Test squad for this high-profile series that has gotten the cricket world talking.

His inclusion comes in the wake of Ravichandran Ashwin’s retirement from limited-overs cricket and his exclusion from the playing XI in the first few Tests of the series. With Ashwin’s absence, Sundar was given an opportunity to step into the spin department alongside Ravindra Jadeja, especially after a stellar performance against New Zealand earlier this year. Sundar claimed seven wickets in a single innings during that match, putting in a performance that elevated his reputation as a reliable bowling option. This made his re-entry into the squad even more anticipated, with many hoping for him to make an immediate impact.

However, while Sundar’s return has been welcomed by many, not all are convinced about his role as an all-rounder in the traditional sense. Former cricketer Sanjay Manjrekar, known for his insightful commentary, expressed his doubts over Sundar’s credentials as an all-rounder, suggesting that the young player’s contributions with the bat and ball have not always been consistent enough to fulfill the high expectations that come with such a role. Manjrekar also included Nitish Reddy in his criticism, questioning whether both players could truly fulfill the versatile role needed in modern Test cricket.

For Sundar, however, his performance will likely speak louder than any criticism. The pressure on him to perform in a Test series as crucial as this one against Australia is immense, and many eyes will be on him to prove his worth. With the likes of Marnus Labuschagne, Usman Khawaja, and Steve Smith in Australia’s formidable lineup, Sundar’s ability to deliver with the ball could be pivotal in the context of the game.

Despite the debate, Sundar’s skills as a bowler have been widely recognized. His calm demeanor and knack for bowling tight lines have helped him earn the confidence of the Indian team management. What sets him apart is his maturity at a young age, especially in pressure situations. Though his batting has not always been as consistent as his bowling, his ability to contribute with the bat adds another dimension to his utility in the team.

The 24-year-old has made his way through the ranks, and this series offers him another chance to prove his mettle. His role in the ongoing series could prove vital, particularly in India’s bid to retain the Border-Gavaskar Trophy. If Sundar can deliver with both bat and ball, he could become a regular feature in the Indian Test team, solidifying his position as a key all-rounder in the squad.

With the series tied and both teams fighting hard for supremacy, Sundar’s performance could be a game-changer for India. His return is symbolic not just of the changes in the Indian squad but of the continued shift towards integrating youth and fresh talent into the team. As the series progresses, all eyes will be on Sundar, who now faces the challenge of turning potential into performance and answering the critics who have questioned his place in the Test team.

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Cricket news

India fight back as Australia take the edge on Day 1 of Boxing Day Test

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Day 1 of the fourth Test between India and Australia at the iconic Melbourne Cricket Ground saw Australia end the day at 311/6, holding a slight advantage despite a spirited Indian fightback led by Jasprit Bumrah.

Steve Smith, steady as ever, remained unbeaten on 68, joined by Pat Cummins (8*) at the crease. The day belonged to Australia’s batting lineup, which delivered a solid performance on a favorable pitch.

Debutant Sam Konstas was the highlight of the Australian innings, crafting an impressive 60 runs in his first Test appearance. The 19-year-old showcased maturity beyond his years, dispatching the Indian bowlers with confidence. His knock complemented the contributions from Usman Khawaja (57) and Marnus Labuschagne (72), who anchored Australia’s innings with composed fifties.

India’s bowling unit, spearheaded by the ever-reliable Jasprit Bumrah, kept the visitors in the contest. Bumrah’s figures of 3/75 reflected his knack for breaking partnerships at crucial moments. Supporting him, Ravindra Jadeja, Washington Sundar, and Akash Deep each claimed a wicket to prevent Australia from running away with the game.

Australia’s playing XI featured a formidable lineup, including skipper Pat Cummins, Mitchell Starc, and spinner Nathan Lyon. India fielded an interesting combination, with Rohit Sharma leading a side that featured young talents like Yashasvi Jaiswal and Nitish Kumar Reddy alongside experienced campaigners Virat Kohli and Rishabh Pant.

As Day 1 concluded, the match remained finely poised. While Australia’s top order laid a strong foundation, India’s bowling ensured they stayed in contention, setting the stage for an intriguing Day 2 of the Boxing Day Test in the Border-Gavaskar Trophy 2024/25.

The stakes remain high as both teams seek to assert dominance in this crucial encounter.

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