Millionaire households in India swell amid slowdown

[IndoCarib]

Even as India’s once red-hot economy is showing signs of a slowdown, the number of millionaire households in Asia’s third-largest economy is growing at a rapid pace.


The number of millionaire households in India jumped nearly 21 per cent to 162,000 in 2011 from 134,000 in 2010, according to The Boston Consulting Group’s (BCG) global wealth report. Ultra-high-net-worth households, those having more than $100 million (Rs 560 crore) in private financial wealth, in India increased 15.35 per cent to 278 in 2011 from 241 in 2010.

The sharp increase in millionaire households in India comes at a time when the economy’s growth is faltering. The country’s gross domestic product (GDP) grew 5.3 per cent in the January – March quarter from a year-ago period, lowest in the last nine years.

India ranked 13 in the world in terms of number of millionaire households in 2011. The US had the largest number (5.1 million), followed by Japan (1.6 million) and China (1.4 million), according to BCG.

In neighbouring China, the number of such households rose 15.56 per cent to 1,432,000 in 2011 from 1,239,000 in 2010.

Globally, the number of millionaire households increased by just 175,000, or 1.4 per cent, to 12.6 million in 2011 from a year-ago period.

Private financial wealth includes cash and deposits, money market funds, listed securities held directly or indirectly through managed investments, and other onshore and offshore assets. It excludes investors’ own businesses, residences, or luxury goods.

Private wealth in Asia-Pacific (ex-Japan) increased by 10.7 per cent in 2011 to $23.7 trillion. BCG expects wealth in the Asia-Pacific region to continue growing at a double-digit rate, with a projected compounded annual growth rate (CAGR) of 11.1 per cent, and reach $40.1 trillion by the end of 2016. By then, the global consulting firm expects private wealth in Asia Pacific (ex-Japan) to slightly overtake Western and Eastern Europe combined.

“These gains should be driven largely by sustained strong gross domestic product (GDP) growth in China and India and overall stronger stock-market performance,” BCG said.

BCG expects emerging markets like China and India to fuel the growth of global wealth. It expects private wealth in India and China to grow at a CAGR of 19 per cent and 15 per cent, respectively, between 2012 and 2016, significantly faster than the global forecast of four to five per cent annually. India will account for 10 per cent (about $2.7 trillion) of the overall increase in global wealth between 2012 and 2016, according to the report.


Millionaire households in India swell amid slowdown

These millionaires must be having NRI relatives who send dollars home That is the only explanation !

 

[RISING SUN]

India home to 2,45,000 millionaires; household wealth at $5 trillion
India's total household wealth stood at USD 5 trillion while the country is home to 2,45,000 millionaires, says a Credit Suisse report.

The number of ultra rich in the country is expected to rech 3,72,000 while the total household income is likely to grow by 7.5 per cent annually to touch USD 7.1 trillion by 2022, the report said.

According to Credit Suisse Global Wealth Report, since 2000, wealth in India has grown 9.2 per cent per annum, faster than the global average of 6 per cent even when taking into account population growth of 2.2 per cent annually.

Moreover, India's wealth growth of USD 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, reflected in the fact that 92 per cent of the adult population has wealth below USD 10,000," the report said.

At the other extreme, a small fraction of the population (just 0.5 per cent of adults) has a net worth over USD 100,000. However, due to India's large population, this translates into 4.2 million people.

India has 340,000 adults in the top 1 per cent of global wealth holders, which is a 0.7 per cent share. By our estimates, the report said adding that 1,820 adults have wealth over USD 50 million, and 760 have more than USD 100 million.

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.

"Thus, 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," it 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 in the world in terms of wealth per adult with USD 537,600 in 2017, followed by Australia (USD 402,600) and United States (USD 388,000) in the second and third place respectively, the report said.
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