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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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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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US vs China trade war: Beijing hits back with 84% tariffs after Trump’s 104% import duty

The new tariff rate, set to take effect on April 10, marks a sharp retaliation to Washington’s recent imposition of steep duties on Chinese exports.

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China US trade war

In a bold escalation of the ongoing trade dispute between the world’s two largest economies, China announced on Wednesday, April 9, that it will increase tariffs on all goods imported from the United States to 84 per cent, up from the previously stated 34 per cent.

The new tariff rate, set to take effect on April 10, marks a sharp retaliation to Washington’s recent imposition of steep duties on Chinese exports.

Last week, Beijing signalled its initial response with a 34 per cent tariff on US-origin products, reacting to fresh trade restrictions from the US.

However, following the implementation of a 104 per cent tariff on Chinese imports by the US—effective Wednesday under former President Donald Trump’s policies—China has significantly ratcheted up its countermeasures. This tit-for-tat escalation signals deepening economic tension that could disrupt global trade and supply chains.

The US tariffs, which include a baseline 10 per cent increase rolled out over the weekend and additional levies from February and March, now total a staggering 104 per cent on Chinese goods.

Trump, who returned to the presidency, had initially proposed a 34 per cent tariff hike, but after China responded with its own 34 per cent duty on American products, he vowed to add another 50 percent, bringing the total to its current level.

On Tuesday, Trump claimed that the US was “taking in almost $2 billion a day” from these tariffs, defending his strategy as a means to revive America’s manufacturing sector by forcing companies to relocate domestically.

However, the global economic fallout has been immediate and severe. Since Trump’s baseline tariffs took effect, markets worldwide have experienced dramatic sell-offs, fueling fears of a potential recession. Starting Wednesday, import tariffs from dozens of economies, including major players like India, Brazil, and the European Union, are also rising, compounding the uncertainty.

In China, senior officials, including President Xi Jinping’s top economic advisor, condemned the US moves as “unilateralism, protectionism, and economic coercion.” The advisor emphasized that China’s retaliatory measures are not only to protect its own interests but also to uphold international trade rules.

“Our firm response demonstrates our commitment to defending fairness in global commerce,” he stated, warning that Beijing would fight “to the end” against what it perceives as American aggression.

Trump, meanwhile, remains undeterred, arguing that higher tariffs will pressure companies to shift production back to the US.

During a speech on April 8 at a fundraising gala for House Republicans, he outlined plans to impose major tariffs on the pharmaceutical sector, claiming it would incentivize firms to leave China and other countries. “We’re a very big market, and when they hear about these tariffs, they’ll open plants here,” he said.

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Trump pokes fun at world leaders negotiating US tariffs, says they are dying to make a deal

“We don’t make our own pharma drugs; they’re made in other countries. The same packet that costs a certain price abroad can be priced ten times higher here,” he said.

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During a fundraising gala for House Republicans, US President Donald Trump took a swipe at world leaders eager to negotiate trade deals, mimicking their desperation with a theatrical flourish. “These countries are calling us up, and trying everything,” he quipped, before imitating their pleas: “Please, please, sir, make a deal. I’ll do anything, sir.”

Trump’s remarks, delivered with his signature bravado, underscored his aggressive stance on international trade as he addressed supporters at the event. He also took aim at rebel Republicans who have suggested that Congress should handle trade negotiations instead of the executive branch. “Let me tell you, you don’t negotiate like I negotiate,” he asserted, dismissing their approach with confidence.

The comments came on the heels of escalating trade tensions, particularly with China. Earlier, the White House confirmed that US tariffs on Chinese imports would jump to 104 percent starting Wednesday, April 9.

A White House official told CNBC that the increase would proceed as planned after Trump warned of a potential 50 percent hike unless Beijing lifted its 34 percent retaliatory tariffs on US goods by Tuesday’s deadline. Trump had set a firm noon deadline on Tuesday, emphasizing that China needed to act swiftly to avoid further escalation.

At the gala, Trump also revealed plans to impose significant tariffs on the pharmaceutical sector, arguing that the US relies too heavily on foreign production. “We don’t make our own pharma drugs; they’re made in other countries. The same packet that costs a certain price abroad can be priced ten times higher here,” he said.

“We’re going to tariff pharma in such a way that companies will come rushing to us very soon. The advantage we have is that we’re a massive market. Very shortly, I’ll announce major tariffs on pharma, and when these companies hear that, they’ll leave China and other countries because most of their products are sold here. They’ll start opening plants in the US.”

Trump’s tariff strategy extends beyond China. Earlier this month, he announced new tariffs on imports from countries including India, Brazil, Japan, and the European Union, warning that more measures would follow. These actions have sparked uncertainty among nations and triggered volatility in global financial markets, as countries brace for potential economic repercussions.

The President’s remarks at the gala, which raised funds for House Republicans, reflect his “America First” approach, prioritizing domestic industry and reducing trade deficits. However, his mocking tone and unilateral decisions have drawn criticism from allies and adversaries alike, with some fearing a return to trade wars that could disrupt global economic stability.

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