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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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PoK protest leader seeks India’s help amid Pakistan crackdown, alleges humanitarian crisis

JAAC leader Sardar Aman Khan has appealed to India for humanitarian assistance, alleging shortages of food and medicines amid Pakistan’s crackdown on protesters in Pakistan-occupied Kashmir.

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The leader of the Joint Awami Action Committee (JAAC), Sardar Aman Khan, has appealed to India for humanitarian assistance amid the ongoing unrest in Pakistan-occupied Kashmir (PoK), claiming that the region is facing severe shortages of essential supplies following a crackdown by Pakistani authorities.

According to Khan, residents are struggling to access food and medicines as security operations against protesters continue. He also urged India to consider opening the Line of Control (LoC) to allow humanitarian assistance and provide civilians with the option of crossing into India if the situation worsens.

JAAC chief calls for humanitarian assistance

Speaking at a public gathering, Khan claimed that an economic blockade imposed after the crackdown had created serious hardships for people in the region.

In a video that has circulated widely on social media, he is heard saying that PoK residents need India’s assistance due to shortages of essential commodities.

He also appealed for the opening of crossing points along the LoC, particularly in the Poonch and Doda sectors, alleging that the ongoing restrictions had further intensified the humanitarian situation.

During the rally at Rawalakot’s Eidgah Ground, Khan asked the crowd whether they should move towards the Line of Control. The gathering repeatedly responded in support of the proposal.

He further warned that if public demands continued to be met with force, people could consider other options.

It is important to note that the authenticity of the viral video, reportedly from Khan’s June 30 rally, has not been independently verified.

Protests continue across PoK

The appeal comes as demonstrations continue across Pakistan-occupied Kashmir, where protests against the Pakistani administration have been ongoing since last month.

During a recent rally at Eidgah Ground, protesters raised slogans including “PoK is not part of Pakistan” and “We want freedom,” indicating that the movement has expanded beyond demands for reforms to include calls for independence from Pakistan’s political control over the region.

Crackdown follows ban on JAAC

The unrest intensified after Pakistani authorities banned the Joint Awami Action Committee on June 5, designating the grassroots organisation as a terrorist group.

According to a recent report by the International Centre for Peace Studies, Pakistan has historically exercised significant political control over Pakistan-occupied Kashmir and Pakistan-occupied Gilgit-Baltistan through mainstream political parties aligned with Islamabad.

The report also noted that the ruling party in Islamabad has consistently won elections in both regions, suggesting a long-standing pattern of political influence.

Meanwhile, several analysts have argued that the ongoing crisis reflects growing dissatisfaction among local residents with the regional administration, which they describe as lacking independent authority. They also contend that the ban on the JAAC and the use of force against protesters are part of broader efforts to suppress the expanding protest movement.

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Death to Trump chants heard during Ayatollah Ali Khamenei’s funeral appearance in Iran

Crowds at a funeral ceremony attended by Iran’s Supreme Leader Ayatollah Ali Khamenei chanted “Death to Trump” as regional tensions remained high following the recent Iran-Israel conflict.

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Crowds attending a funeral ceremony in Iran raised chants of “Death to Trump” as the country’s Supreme Leader, Ayatollah Ali Khamenei, made a public appearance during the event.

The slogans were heard as thousands gathered to pay tribute to those killed during the recent conflict involving Iran and Israel. The ceremony also marked one of Ayatollah Khamenei’s notable public appearances after the military escalation that had heightened tensions across the region.

Anti-US slogans raised during ceremony

Videos circulating from the funeral ceremony showed mourners chanting “Death to America” and “Death to Trump” while Ayatollah Khamenei attended the event. Such slogans have long been associated with state-backed public gatherings in Iran and were repeated during the ceremony attended by senior Iranian officials and large crowds.

The funeral was held to honour military commanders, nuclear scientists and other individuals who Iran says were killed during the recent conflict. The gathering drew thousands of people to the capital, where processions and official tributes were organised.

Public appearance after recent conflict

Ayatollah Khamenei’s appearance came after weeks of heightened tensions in the Middle East following Israeli strikes on Iranian targets and subsequent military exchanges between the two countries. The conflict also saw the United States carry out strikes on Iranian nuclear facilities, further escalating regional tensions.

The funeral ceremony was among the Supreme Leader’s most significant public appearances since the conflict, with state media extensively covering the event.

Regional tensions remain high

Relations between Iran, Israel and the United States remain strained despite the ceasefire announced following the recent hostilities. Officials from the three countries continue to exchange strong statements over the military operations and the future of Iran’s nuclear programme.

The funeral ceremony reflected the continuing anti-US and anti-Israel sentiment expressed by sections of the Iranian establishment and supporters attending the event.

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India News

USA marks 250 years with Independence Day with nationwide celebrations

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The United States of America is observing its Independence Day on July 4 with celebrations taking place across the country. Public events, parades, concerts, and fireworks have been organized in several cities as Americans mark the nation holiday.

Large gatherings have been reported in cities including Washington D.C., New York, Boston, and Philadelphia, where thousands of people are participating in officials and community-led celebrations. Public parks, streets, and other venues have been prepared to host visitors throughout the day.

Government officials, including US President Donald Trump, extended Independence Day greetings and participated in events celebrating the occasion. Ceremonies honouring military personnel, experts, and first responders have also been held in different parts of he country.

Authorities have stepped up security arrangements at major event locations to manage large crowds. Additional police forces and emergency response teams have been posted, while officials have advised the public to follow safety instructions during the celebrations.

The holiday has also resulted in increased travel activity, with airports, highways, and railway stations experiencing heavy passenger movement. Hotels, restaurants and tourist attractions are seeing a rise in visitors as many people use the long weekend for travel and family gatherings.

Although weather conditions have disrupted a few outdoor events in some areas, most programme are continuing as scheduled. Fireworks displays are expected to take place in the evening at several locations, including major cities known for their annual Independence Day celebrations.

The nation celebrates Independence Day every July 4. It marks the adoption of the Declaration of Independence in 1776, when 13 American colonies became independent from British rule. It is one of the most important national holidays in the United States and is celebrated with parades, fireworks, official ceremonies, and community events across the country.

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