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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.

India News

Russian missile strike on religious holiday kills 21 in Sumy, President Zelenskiy condemns Palm Sunday attack

A Russian missile attack on Ukraine’s Sumy killed 21 people and injured 83 on Palm Sunday, prompting President Zelenskiy to urge strong global action against Moscow.

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Sunday Palm Attack, Zelensky condemns

At least 21 people were killed and 83 others wounded in a Russian ballistic missile strike on the northern Ukrainian city of Sumy on Sunday morning, in what has been described as one of the deadliest attacks on Ukraine this year. The strike hit a bustling area of the city, with victims found on the streets, in public transport, vehicles, and buildings, Ukrainian officials said.

The timing of the attack – on Palm Sunday, a significant Christian religious day – has added to the outrage. Ukrainian President Volodymyr Zelenskiy denounced the strike, calling for a strong international response and labeling it an act of terror.

“Only scoundrels can act like this. Taking the lives of ordinary people… on a day when people go to church: Palm Sunday,” Zelenskiy posted on social media, along with harrowing footage showing bodies lying on the street, a destroyed bus, and charred vehicles.

Civilian destruction called ‘deliberate’

Ukraine’s Interior Minister Ihor Klymenko said the missile strike deliberately targeted civilians during a religious feast day. “Deliberate destruction of civilians on an important church feast day,” Klymenko wrote. He confirmed that the victims included people on foot, traveling in public transport, in private vehicles, and inside buildings at the time of the impact.

The strike triggered an outpouring of grief and condemnation across Ukraine and the international community.

US envoy visit sparks fresh scrutiny

The missile attack came just two days after U.S. envoy Steve Witkoff, a special representative of former President Donald Trump, held talks with Russian President Vladimir Putin in St. Petersburg as part of an effort to negotiate a peace deal. The timing of the Sumy strike has drawn criticism from Ukrainian officials, with Andriy Kovalenko, head of Ukraine’s Centre for Countering Disinformation, accusing Russia of “building diplomacy around strikes on civilians.”

“Russia is building all this so-called diplomacy… around strikes on civilians,” he posted on Telegram.

Zelenskiy reiterated his demand for stronger U.S. and European action, stating that missile strikes and aerial bombs cannot be stopped by talks alone. “Russia wants exactly this kind of terror and is dragging out this war. Without pressure on the aggressor, peace is impossible,” he warned.

War continues despite ceasefire talk

The missile strike on Sumy underscores the ongoing intensity of the war, which began with Russia’s full-scale invasion in February 2022. Russia currently occupies around 20% of Ukraine’s territory in the east and south. Although both nations agreed last month to avoid strikes on each other’s energy infrastructure, Russia claimed on Saturday that Ukraine carried out five attacks on its energy facilities – calling it a violation of the U.S.-brokered moratorium.

Ukraine, however, maintains that it is Russia that has repeatedly breached the pause with continued drone and missile strikes on Ukrainian civilian areas.

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China reacts after Zelensky accuses Russia of dragging Beijing into Ukraine war

Without directly naming Zelensky, Lin urged all concerned parties to “correctly and soberly understand China’s role and refrain from making irresponsible statements.”

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China on Thursday, April 10, reiterated its commitment to promoting peace in the Ukraine conflict while cautioning against “irresponsible remarks” from relevant parties, in an apparent response to Ukrainian President Volodymyr Zelensky’s recent allegations.

Zelensky had claimed on Wednesday that 155 Chinese citizens were fighting alongside Russian forces in Ukraine, a statement that drew sharp rebuttals from both Beijing and Moscow.

During a regular news conference, Chinese Foreign Ministry spokesperson Lin Jian emphasized China’s neutral position, stating, “I would like to reiterate that China is neither the initiator of the Ukrainian crisis nor a participating party. We are a firm supporter and active promoter of a peaceful settlement.”

Without directly naming Zelensky, Lin urged all concerned parties to “correctly and soberly understand China’s role and refrain from making irresponsible statements.”

China, which has maintained a “no-limits” strategic partnership with Russia since early 2022, has positioned itself as a mediator in efforts to end the war, avoiding any direct criticism of Russia’s full-scale invasion of Ukraine that began in February of that year.

Lin also reiterated Beijing’s official guidance to its citizens, urging them to avoid armed conflict zones and “refrain from participating in military actions on either side.”

Zelensky’s comments stemmed from reports of two Chinese nationals captured by Ukrainian forces in eastern Ukraine, where Russian troops have been making gains. He alleged that Russia was recruiting Chinese citizens through social media, with the knowledge of Chinese officials, and that Ukraine’s security services had compiled detailed lists including names, birth dates, and military unit assignments of these individuals.

Zelensky further suggested that Ukraine was investigating whether these recruits were acting under instructions from Beijing, labeling their involvement as Russia’s “second mistake” in the war—following what he and Western nations describe as the deployment of over 11,000 North Korean troops to Russia’s Kursk region.

Meanwhile, the Kremlin, on the same day, dismissed Zelensky’s assertions that China was being drawn into the conflict.

Kremlin spokesperson Dmitry Peskov told reporters, “This is not the case. China maintains a balanced position. China is our strategic partner, friend, and comrade.” Peskov argued that Moscow was not pulling Beijing into the fray and countered, “Zelenskyy is wrong.”

The backdrop to these exchanges is the deep ties between Russia and China, which were formalized days before President Vladimir Putin ordered the invasion of Ukraine in February 2022. This partnership has allowed both nations to coordinate closely on geopolitical issues, with China often acting as a counterbalance to Western influence.

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Nightclub roof collapse in Dominican Republic: Toll crosses 114

As concrete slabs crashed down, more than 114 people were killed, and many others were trapped on a packed dance floor where attendees were enthusiastically enjoying a merengue concert early Tuesday morning. Authorities reported over 255 injuries.

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The iconic Jet Set nightclub in Santo Domingo was bustling with musicians, athletes, and government officials when debris began to fall from the ceiling, landing in patrons’ drinks.

Tragedy struck with the collapse of the entire roof, claiming the lives of at least 98 individuals and injuring around 160 in one of the worst nightclub disasters in the Dominican Republic’s history. As concrete slabs crashed down, more than 114 people were killed, and many others were trapped on a packed dance floor where attendees were enthusiastically enjoying a merengue concert early Tuesday morning. Authorities reported over 255 injuries.

Among the deceased was Rubby Pérez, a beloved merengue star who had been performing just moments before the calamity. His body was recovered early Wednesday, according to emergency operations director Juan Manuel Méndez.

Rescue teams continued to search for survivors more than a day after the incident. “We will remain here as long as there are reports of missing persons,” Méndez stated.

Assistance arrived from rescue teams from Puerto Rico and Israel on Wednesday to aid local officials in their efforts.

As night fell on Tuesday, families and friends still searching for their loved ones gathered outside the club, where a guitarist played soothing melodies while they sang hymns.

Only 32 victims have been identified thus far in what is marked as one of the Dominican Republic’s deadliest disasters. Reports indicate that among the victims were a cardiologist, a government architect, a retired police officer, and the brother of the vice minister of Youth.

Also among the deceased are MLB pitcher Octavio Dotel and Dominican player Tony Enrique Blanco Cabrera, as confirmed by Satosky Terrero, spokesperson for the Professional Baseball League.

Nelsy Cruz, the Governor of Montecristi province and sister of seven-time MLB All-Star Nelson Cruz, informed President Luis Abinader about the disaster. Tragically, she called for help from beneath the rubble but later succumbed to her injuries in a hospital.

Other casualties included saxophonist Luis Solís, who was performing on stage when the roof fell, several Venezuelan bartenders, and an Army officer who left behind four daughters. Grupo Popular, a financial services firm, noted that three of its employees perished, including the president of AFP Popular Bank and his wife. Unfortunately, many more victims remain unidentified.

“I’ve searched all the hospitals and haven’t found her,” lamented Deysi Suriel, who was desperately trying to locate her friend, 61-year-old Milca Curiel, during her vacation in the Dominican Republic.

Numerous anxious relatives flocked to the National Institute of Forensic Pathology to search through lists of victims, while others scoured hospitals, clutching photos of their loved ones.

“There’s a lot of pain,” commented Senator Daniel Rivera, the former public health minister. “We must exercise patience.”

Among those desperately looking for their families was Kimberly Jones, whose godson, 45-year-old artist Osiris Blanc, and his friends were unaccounted for.

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