Skip to main content

India's total wealth declined by 0.8% in 2015-16: Credit Suisse research

By Our Representative
Government of India may claim that the country’s gross national product (GDP) during 2015-16 grew by 7.56%, one of the highest in the world. However, Credit Suisse, a Switzerland-based multinational financial services group, has said that, in real terms, there was a decline of 0.8% in the country’s total wealth in 2015-16.
Estimating total wealth of India at $3,099 billion in 2016, the MNC in its Global Wealth Report 2016, brought out by its research wing, says that in 2015-16 there was a downfall of $26 billion.
India’s fall in total wealth comes about amidst a rise of 1.4% globally, mainly on account of a whopping increase of 8.3% in the Asia-Pacific region and 2% in North America.
During the same period, the MNC research estimates, India’s wealth per adult went down by 2.8%, as against a decline of just 0.1% globally. India’s wealth per adult stood at $ 3,835 in 2015-16.
The report says, “The largest percentage rise (16%) in household debt per adult was recorded in India”, even as “residents of India remain heavily concentrated in the bottom half of the distribution, accounting for more than a quarter of the members.”
Pointing towards the country’s “high wealth inequality and immense population”, the report states, this means that India “also has a significant number of members in the top wealth echelons.”
Noting that globally “wealth growth has undeniably been on a declining path”, the report says, “In regions such as India and China, this is more evident, as wealth growth has more than halved compared to the previous five years.”
Suggesting that wealth in India is poorly distributed, the report says, “India accounts for just 3.1% of those with mid-range wealth, and that share has changed very little during the past decade. In contrast, China accounts for 33% of those with wealth between $10,000 and $100,000, ten times the number of Indians, and double the proportion of Chinese in 2000.”
If calculated “in terms of its own currency, India's wealth has grown quite quickly since the turn of the century, except during the global financial crisis”, the report says, “Annual growth of wealth per adult in rupees has averaged 6% over 2000-16.”
In dollar terms, the report states, “Prior to 2008, wealth also rose strongly in USD terms, from USD 2,040 in 2000 to USD 5,100 in 2007. After falling 26% in 2008, it rebounded, reaching USD 5,100 in 2010, but since then has fallen 25% due to currency depreciation. Wealth per adult has not regained its previous peak, and was just USD 3,840 in mid-2016.”
“Personal wealth in India is dominated by property and other real assets, which make up 86% of estimated household assets”, the report says, adding, “This is typical for developing countries.”
Interestingly, the report says, “Personal debts are estimated to be only USD 376, or just 9% of gross assets, even when adjustments are made for underreporting. 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.”
Pointing towards “considerable wealth poverty” in India, the report says, this reflected in the fact that “96% of the adult population has wealth below USD 10,000. At the other extreme, a small fraction of the population (just 0.3% of adults) has a net worth over USD 100,000. However, due to India's large population, this translates into 2.4 million people.”
“The country has 248,000 adults in the top 1% of global wealth holders, which is a 0.5% share. By our estimates, 2,260 adults have wealth over USD 50 million, and 1,040 have more than USD 100 million”, the report says.

Comments

TRENDING

Call to support IIM-Bangalore professor, censured for seeking action against Uniliver

Counterview Desk
Sections of the Indian Institute of Managements (IIMs) across India have strongly reacted to the decision to censure Dr Deepak Malghan, a faulty at IIM-Bangalore. Prabhir Vishnu Poruthiyil, who is faculty at IIM-Tiruchirapalli, has sought wider solidarity with Dr Malghan, saying, "The administration has censured Deepak for merely suggesting a meaningful action against Hindustan Unilever for their abysmal environmental record" by “disinviting” it for campus placement.

Actionable programme for 2019 polls amidst lynch mobs, caste violence, hate mongering

Counterview Desk
Reclaiming the Republic, a civil rights network, has released a document prepared under the chairmanship of Justice AP Shah (retired) -- and backed, among others, by Supreme Court advocate Prashant Bhushan, bureaucrat-turned-human rights activist Harsh Mander, economist Prabhat Patnaik, Right to transparency activist Anjali Bhardwaj and social scientist Yogendra Yadav  (click HERE for full list) -- with the "aim" of putting forth policy and legislative reforms needed to “protect” and “strengthen” the Constitutional safeguards for India’s democratic polity.

Noam Chomsky, top scholars ask NRIs to take stand on human rights violations in India

Counterview Desk
Renowned world scholars, including Noam Chomsky, James Petras, Angela Davis, Fredric Jameson, Bruno Latour, Ilan Pappe, Judith Butler, among others, have issued a statement castigating the Narendra Modi government for allegedly creating an environment of fear through arrests, intimidation and violence.

India under Modi "promoted" crony business, protected financial fraudsters, fueled bigotry

By Sandeep* and Rahul Pandey**
Narendra Modi's ascension to power was accompanied with jubilation and expectation. His supporters were expecting an end to era of corruption and initiation of good governance which was described as Achche Din. His party's adherence to idea of nationalism was believed to make India a vibrant country and guide India to be a world leader. He gave the slogan of 'Sabka Saath, Sabka Vikas' conveying that his government was for all.
Corruption The government system is infested with corruption. A minimum of 10% is siphoned off from government schemes and projects, some of which goes back to political party in power and remaining is pocketed by various administrative, executive and political functionaries. This corruption continues and has increased. Now an additional Rashtriya Swayamsewak Sangh (RSS) person working as Official on Special Duty or some equivalent position in every government department also has a share in this booty.
The Narendra M…

Inviting Rajapaksa to India "insult" to 1,40,000 Tamils killed by Sri Lankan army

Counterview Desk
In the context of Sri Lankan opposition leader Mahinda Rajapaksa being invited in India, about 75 human rights activists*, claiming to be concerned about rights violations during the civil war in Sri Lanka, especially in 2009, have joined together to express their dissent through a statement.

A Godse legacy? BJP rulers have "refrained" from calling Gandhi Father of the Nation

By Dr Hari Desai*
What an agony! On one hand, the entire India is celebrating the 150th birth anniversary of Mahatma Gandhi under the leadership of Prime Minister Narendra Modi, but on the other side, so-called Hindu Mahasabha members have been found mock-enacting the killing of the Mahatma and celebrating the murder by distributing sweets!

No aadhaar, no ration? Hard blow by Gujarat govt on poor and marginalized

By Pankti Jog*
Only those who have aadhaar registration and linked it with ration card will get ration from a Public Distribution System (PDS) shop. This decision of the Gujarat government has hit very badly thousands of poor and marginalized communities of Gujarat, especially during the drought year.

Not just Indian women engineers, men too face sexual harassment at workplace: US study

By Rajiv Shah
A recent research, carried out jointly by two US-based non-profit organizations, Society of Women Engineers (SWE) and Center for WorkLife Law (WLL), based at the University of California, Hastings College of the Law, has found that 45% of women engineers as against 28% of men engineers complained that it was perceived as “inappropriate when women argued at work, even when it was work-related.”

Post-advisory, Govt of India appears reluctant to ban e-cigarettes, "harmful" to kids

By Rajiv Shah
Is the Government of India dilly-dallying over the issue of banning e-cigarettes, which have been declared by anti-tobacco activists across the world as providing “an entryway to nicotine addiction”, especially among the kids? It would seem so, if the latest developments are any guide.

Poser to Modi: Why is Gujarat not fulfilling Constitutional obligations to minorities?

Counterview Desk
In an open letter, Mujahid Nafees, convener, Minority Coordination Committee (MCC), a Gujarat-based civil rights organization, has accused Prime Minister Narendra Modi on infringing upon MCC activists’ constitutional right to protest. Nafees says, they had no other demands except that the Gujarat government should move towards fulfilling the constitutional obligations towards minorities and international treaties to which India is a signatory.