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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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Bangladesh envoy meets S Jaishankar, Dhaka foreign minister may visit India in April

India and Bangladesh are stepping up diplomatic engagement as S Jaishankar meets envoy Riaz Hamidullah and discussions begin on a possible visit by Dhaka’s foreign minister.

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Bangladesh envoy meets S jayshankar

India’s External Affairs Minister S. Jaishankar met Bangladesh High Commissioner Riaz Hamidullah, marking a key diplomatic engagement amid efforts to further strengthen bilateral ties between the two countries.

The meeting assumes significance as it was Hamidullah’s first interaction with a senior Indian cabinet minister since he took charge in May last year.

Following the meeting, Hamidullah shared on social media that he had a “courtesy call” with Jaishankar and reaffirmed Bangladesh’s readiness to work together with India in areas of shared interest and mutual benefit.

Jaishankar also highlighted the importance of the engagement, noting that discussions focused on advancing bilateral relations between the neighbouring nations.

Possible visit by Bangladesh foreign minister

Diplomatic engagements between the two countries are expected to intensify in the coming weeks. According to sources, Bangladesh Foreign Minister Khalilur Rahman may visit India in the second week of April.

The visit is likely to be planned alongside his participation in a ministerial-level meeting of the Indian Ocean Rim Association (IORA) in Mauritius.

Rahman, who previously studied at Jawaharlal Nehru University in New Delhi, is considered familiar with India’s strategic and political landscape. He had also visited India in November last year in his earlier role as national security adviser under the interim government led by Muhammad Yunus.

He was appointed foreign minister after Tarique Rahman assumed office earlier this year.

High-level exchanges expected

Prime Minister Narendra Modi had earlier congratulated Tarique Rahman on his electoral victory and extended an invitation to visit India.

Lok Sabha Speaker Om Birla also attended Rahman’s swearing-in ceremony and later conveyed a personal letter from Modi, reiterating the invitation for an official visit.

The recent meeting between Jaishankar and Hamidullah is seen as part of broader diplomatic efforts to maintain momentum in India-Bangladesh relations through sustained high-level dialogue.

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PM Modi speaks to Qatar, France, Jordan, Oman and Malaysia leaders on Middle East tensions

PM Modi held talks with leaders of five nations, stressing dialogue, condemning attacks on energy infrastructure and urging stability in the Middle East.

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PM Narendra Modi

Prime Minister Narendra Modi held a series of high-level conversations with leaders from multiple countries, including Emmanuel Macron, as concerns grow over the escalating situation in the Middle East.

During separate telephonic discussions with leaders of Qatar, Jordan, Oman and Malaysia, the prime minister stressed the urgent need for de-escalation through dialogue and diplomacy. He also strongly condemned recent attacks targeting energy infrastructure in the region, warning that such actions could worsen tensions.

In his interaction with Qatar’s Amir, Sheikh Tamim bin Hamad Al Thani, PM Modi conveyed Eid greetings and reaffirmed India’s solidarity with the Gulf nation. He appreciated the support extended to the Indian community and reiterated the importance of ensuring safe and free navigation through the Strait of Hormuz.

Speaking with King Abdullah II, the prime minister again underlined the need for restoring peace and stability. Both leaders expressed concern over the evolving situation and agreed that attacks on energy infrastructure could trigger avoidable escalation. PM Modi also acknowledged Jordan’s assistance in facilitating the safe return of stranded Indian nationals.

In a separate exchange with French President Emmanuel Macron, the leaders discussed the urgent need to reduce tensions and maintain diplomatic efforts. Both sides agreed to continue close coordination to support peace initiatives in the region.

PM Modi also spoke with Haitham bin Tariq, where the two leaders emphasised prioritising dialogue for restoring stability. The prime minister condemned violations of Oman’s sovereignty and appreciated its role in helping evacuate people, including Indian citizens.

During his conversation with Malaysian Prime Minister Anwar Ibrahim, PM Modi exchanged festive greetings and discussed the broader regional situation. Both leaders reaffirmed their commitment to resolving the crisis through peaceful means.

These diplomatic engagements come amid heightened tensions following military actions involving the United States, Israel and Iran. India has consistently advocated for stability in the region, given its strategic and economic interests, particularly in energy security and maritime trade routes.

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Russian oil tanker rerouted to India amid Middle East crisis, to reach Mangaluru on March 21

A Russian oil tanker bound for China has been diverted to India as Middle East tensions disrupt global energy supply chains.

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A Russian oil tanker carrying around 7.7 lakh barrels of crude oil is set to arrive at India’s New Mangalore port on March 21 after changing its original route to China, a senior government official said on Thursday.

The vessel, Aqua Titan, which sails under the Cameroon flag, departed from a Russian port on January 18. It altered its course while in the South China Sea and is now heading towards India, reflecting shifting global oil trade patterns amid ongoing geopolitical tensions.

Middle East conflict disrupts global supply

The diversion comes against the backdrop of escalating conflict in the Middle East. The ongoing war involving Iran, along with its retaliatory strikes on Gulf nations, has significantly disrupted oil and natural gas exports from the region. These disruptions have also led to temporary production halts in key energy facilities.

Since the conflict began on February 28, at least four Indian-flagged vessels carrying oil and gas cargo have already reached Indian ports safely.

Indian vessels stranded near Strait of Hormuz

According to the Ministry of Ports, Shipping and Waterways, a large number of Indian vessels remain stuck near the Strait of Hormuz, a critical global oil transit route.

Currently, 22 Indian-flagged cargo ships, along with 611 seafarers, are stranded in the western part of the Persian Gulf. Additionally, two loaded Indian vessels are positioned in the eastern section of the Strait.

Officials confirmed that authorities, including the Directorate General of Shipping, are closely monitoring the situation in coordination with shipowners, recruitment agencies, and Indian embassies. All Indian crew members in the region are reported to be safe, with no incidents recorded in the past 24 hours.

Global shipping crisis deepens

The disruption is not limited to Indian vessels. Around 700 ships from various countries have reportedly been stranded near the Strait of Hormuz for nearly 20 days. This has impacted global oil flows, with nearly 20 percent of crude supplies from the Middle East failing to reach international markets.

India, which imports about 85 percent of its crude oil needs from over 40 countries, is among the nations most affected by the crisis.

Oil prices surge amid attacks on energy infrastructure

Amid rising tensions, global crude prices have surged sharply, with Brent crude crossing $115 per barrel. Iran has threatened further strikes on regional energy installations following attacks linked to Israeli actions.

Recent incidents include missile strikes on Qatar’s Ras Laffan LNG facility, drone attacks on a Saudi refinery along the Red Sea, and fires reported at oil installations in Kuwait.

Government steps up monitoring and response

Authorities have stepped up efforts to manage the situation. The Directorate General of Shipping has facilitated the return of over 472 Indian seafarers so far, including 25 repatriated in the last 24 hours.

Despite the global disruption, India’s ports continue to operate without congestion. Officials confirmed that ports have sufficient storage capacity and are maintaining strict monitoring of vessel movement and cargo handling operations.

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