India has 3,40,000 adults in the top 1 per cent of global wealth holders, which is a 0.7 per cent share, according to a Credit Suisse report released on Tuesday. As many as 1,820 adults own wealth over $50 million (Rs 325 crore), while 760 have more than $100 million (Rs 650 crore). The Credit Suisse Global Wealth Report also said India is home to 2,45,000 millionaires and has a total household wealth of $5 trillion.
The number of ultra rich in the country is expected to reach 3,72,000, while the total household income is likely to grow by 7.5 per cent annually to touch $7.1 trillion by 2022. Since 2000, wealth in India has grown 9.9 per cent per annum, faster than the global average of 6 per cent even after taking into account population growth of 2.2 per cent annually.
Moreover, India's wealth growth of $451 billion represents the 8th largest wealth gain globally by country. While wealth has been rising in India, not everyone has shared in this growth. There is still considerable wealth poverty as 92 per cent of the adult population has below $10,000, the report said.
At the other end of the spectrum, just 0.5 per cent of adult population has a net worth over $100,000. However, given India's large population, this translates into 4.2 million people.
According to the report, personal wealth in India is dominated by property and other real assets, which make up 86 per cent of estimated household assets. Personal debts are estimated to be just 9 per cent of gross assets, overall household debt as a proportion of assets in India is lower than in most developed countries.
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, the report added. According to the eighth edition of the Global Wealth Report, in the year to mid-2017, total global wealth rose at a rate of 6.4 per cent, the fastest pace since 2012 and reached USD 280 trillion. The rise in global wealth reflected widespread gains in equity markets and similar rises in non-financial assets.
The report noted fluctuations in asset prices and exchange rates account for much of the change in household wealth across regions and countries in the short run. Most of these influences have been positive during past 12 months, including in India, where market capitalisation rose by close to 30 per cent, house prices by around 10 per cent, while Indian rupee rose 4 per cent against the US dollar. Globally, Switzerland remains the richest nation with $537,600 wealth per adult in 2017, followed by Australia ($402,600) and the United States ($388,000), the report said.