There’s a considerable wealth poverty in India with as many as 92 per cent of the adult population having a networth below $10,000 (around Rs 6.5 lakh), Swiss brokerage Credit Suisse said in a report.
In China, only 63 per cent of population have a networth below $10,000.
The report said just 0.5 per cent of Indians have a networth over $1,00,000 (Rs 65 lakh). However, due to India’s large population, this translates into 4.2 million people. The share of wealth fails to match the population share as the population share exceeds the wealth share by a factor of almost 10 in the country. The average wealth per adult here is estimated at $ 5,980 (Rs 3,88,700) in mid-2017, it said.
Personal wealth is dominated by property and other real assets, which make up 86 per cent of estimated household assets, while personal debt is estimated to be $376, or 9 per cent of gross assets, even when adjustments are made for under-reporting.
But the country will see rapid growth in wealth, adding $2.1 trillion by 2022, an increase of 42 per cent over the present level of US dollar close to $5 trillion. “Total wealth here has risen fourfold between 2000 and 2017, reaching $5 trillion in mid-2017. Despite this and having four times the population of the US, India’s total wealth is comparable to the level for the US 90 years ago,” it said.
“But we expect this to reach $6 trillion in real terms by 2022, which is comparable with the level in the US in 1936,” Credit Suisse said. The report further said the country would have 370,000 millionaires in 2022, up from 245,000 now, an increase of over 50 per cent. India saw a 9.9 per cent increase in household wealth to $4.987 trillion, although its addition to total global wealth was just $451 billion in mid-2017. The aggregate global wealth rose by $ 16.7 trillion to $ 280 trillion, up 6.4 per cent.
The report noted that the country has 340,000 adults in the top 1 per cent of global wealth holders, which is a 0.7 per cent share. Of them 1,820 have a networth of over $ 50 million, and 760 have over $ 100 million. “But the overall household debt in the country as a proportion of assets is lower than in most of the developed countries,” it said.
Globally, Switzerland ($5,37,600), Australia ($4,02,600) and the US ($3,88,600) continue to occupy the first three positions. According to its estimates, New Zealand ($3,37,400, up $34,500) has swapped places with Norway ($3,20,500, down $15,000), with Denmark ($2,81,500, up $21,500) moving up three places to sixth, and Belgium ($2,78,100, up $17,200) moving up to seventh. The UK ($2,78,000) and Singapore ($2,68,800) both move two places in the opposite direction, while France ($2,63,400) stays in tenth place.