Despite creating a whopping 7,300 more millionaires during the 12 months to mid-2018, India’s wealth per adult is far below when compared with neighbouring nation China. According to a report by Credit Suisse, during the last 12 months period to mid-2018, the wealth per adult in India remained flat at $7,020 (about Rs 515,970), as against the wealth per adult in China at $47,810 (Rs 35.14 lakh), which is comparatively quite higher.
Recent free fall in rupee against the US dollar was one of the contributing factors for the flat growth in total personal wealth in India, which grew by a modest 2.6% to approximately $6 trillion.
Globally, Switzerland is the richest nation in the world when it comes to wealth per adult with $530,240 during the past 12 months to mid-2018, followed by Australia ($411,060).
In terms of total personal wealth, US ranked first with $98 trillion, followed by China, which added $2.3 trillion during the past 12-months to the total household wealth of whopping $52 trillion. China is expected to grow by a further $23 trillion over the next five years, taking its share of global wealth from 16% in 2018 to just above 19% in 2023, the report added.
On the other side, Credit Suisse estimated that the personal wealth in India is expected to rise by 8% per annum to reach $8.8 trillion over the next five years to 2023, and the country could be home to 526,000 millionaires.
The growth, which has been rising over the years, has not been evenly spread and not everyone has shared this growth, Credit Suisse said, adding that there is still a considerable ‘wealth poverty’ reflected in the fact that 91% of the adult population in the country has wealth below $10,000. On the other side, a small fraction of the population, which 0.6% of adults in the country, has a net worth over $100,000, the report added. Of the total, 3,400 people in India have wealth of over $50 million, and 1,500 of them have more than $100 million of personal wealth each
The personal wealth of the people in India is mainly dominated by property and other real assets, which constituted to about 91% of the estimated household assets, it added. In the last 12 months to mid-2018, the non-financial assets rose by 4.3%, accounting for all the wealth growth in the country.