India created a whopping 7,300 more millionaires during the 12 months to mid-2018, taking the total number of dollar-millionaires to 343,000, who are collectively worth around $6 trillion, says a Credit Suisse 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).
Globally, 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.
While wealth has been rising in India, not everyone has shared in this growth. “There is still considerable wealth poverty, reflected in the fact that 91 per cent of the adult population has wealth below $ 10,000 (around Rs 735,000). At the other extreme, a small fraction of the population (0.6 per cent of adults) has a net worth over $ 100,000 (Rs 73,50,000). However, owing to India’s large population, this translates into 4.8 million people,” Credit Suisse said.
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 (Rs 367.5 crore), and 1,500 have more than $ 100 million (Rs 735 crore).
“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.
According to Credit Suisse Wealth report, personal wealth in India is dominated by property and other real assets, which make up 91 per cent of estimated household assets. Over the 12 months, non-financial assets grew by 4.3 per cent, 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 per cent for India, it said.
“By mid-2018, there were an estimated 343,000 millionaires in India, a rise of 7,300, and 3,400 ultra high net worth individuals with wealth over $ 50 million, sixth highest in the world, after US, China, Germany, UK and Japan. In the next five years to 2023, wealth in India is expected to grow by 8 per cent per annum to reach $ 8.8 trillion,” it said.
Credit Suisse has estimated that India could host 526,000 millionaires, an increase of more than 53 per cent or 8.9 per cent per annum. The report estimates that women’s share of global wealth is around 40 per cent, while recent studies for India indicate a significantly lower share ranging between 20 per cent and 30 per cent.
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, it said.
India’s wealth has trended upward strongly since the turn of the century, although there was a setback in 2008 due to the global financial crisis and there have been bumps due to currency fluctuations. Annual growth of wealth per adult averaged 8 per cent over 2000–18. Prior to 2008, wealth also rose strongly, from $ 1,830 in 2000 to $ 5,020 in 2007. After falling 26 per cent in 2008, it rebounded, and grew at an average rate of 7 per cent up to 2018. Wealth per adult is estimated at $7,020 in mid-2018.