Skip to main content

Indian inequality higher than Pak, China, Bangladesh; 92% adults' net worth less than $10,000; of 0.5% plus $100,000

By Our Representative
Giving a scary picture of inequalities in India, the recently-released “Global Wealth Report 2017”, published by Credit-Suisse, a Swiss multinational financial services holding company, headquartered in Zurich, has said that India’s 92% of adults “have net worth less than USD 10,000”, while “a small fraction of the population (just 0.5% of adults) has a net worth over USD 100,000.”
While the 0.5% adult population of India “translates into 4.2 million people” because of its huge population, the report says, “By our estimates, 1,820 adults have wealth over USD 50 million, and 760 have more than USD 100 million.”
A further breakup of wealth among the top echelons reveals that 10% of the adult population has 73.3% of wealth, 5% has 64.1% of wealth, and 1% has 45.1% of wealth.
In absolute numbers, the report says, as of mid-2017, 770,089,000 adult individuals have a wealth range of under USD 10,000, 60,116,000 have a wealth range between USD 10,000 and 100,000, 4,158,000 have wealth range between USD 100,000-1 million, and 245,000 individuals have wealth more than USD 1 million.
In USD
Pointing out that “while wealth has been rising in India, not everyone has shared in this growth”, the report’s data show that India’s Gini index – an internationally recognized, most commonly used measure of inequality, with 100% representing maximal inequality – is found to be 83%. By comparison, Pakistan’s Gini index is 52.6%, Bangladesh’s 57.9%, Sri Lanka’s 66.5%, Nepal’s 67.3%, and China’s 78.9%.
In fact, says the report, inequalities have risen alongside the total wealth in India increasing fourfold between 2000 and 2017, reaching USD 5 trillion in 2017, adding, “The country’s high wealth inequality and immense population mean that India also has a significant number of members in the top wealth echelons.”
At the same time, it notes, “Despite this remarkable increase and having four times the population of the United States, total wealth in India is comparable to the level for the United States 90 years ago”, adding, “We expect it to reach USD 6 trillion in real terms by 2022, which is comparable with the level in the United States in 1936. India could reach 370,000 millionaires in 2022, an increase of more than 50% in the next five years.”
According to the report, “Personal wealth in India is dominated by property and other real assets, which make up 86% of estimated household assets”, adding, “India is also notable for the rise in household debt, which we estimate to be close to 20% in terms of US dollars.” Thus, the debts per adult, the report’s figures show, have risen from USD 226 in 2007 to almost double as much, USD 609 in 2017.

Comments

TRENDING

World Bank clarifies: Its 26th rank to India not for universal access to power but for ease of doing business

By Our Representative
In a major embarrassment to the Government of India, the World Bank has reportedly clarified that it has not ranked India 26th out of 130 countries for providing power to its population. The top international banker’s clarification comes following Union Power Minister Piyush Goyal’s claim that India has “improved to 26 position from 99” in access to electricity in just one year.

"Misleading" satellite images being shared on Balakot surgical strike on Jaish camp

By Dr Vinay Kate*
With every passing day more questions are being raised about the surgical strike India did in Balakot as a response to Pulwama attacks. So far the Indian media has claimed mass casulaty of 300+ terrorists of Jaish-e-Mohammad in this surgical strike, but there is hardly any report from foreign media about the same.

Extreme repression, corporate loot, cultural genocide "characterise" India's tribal belt

Counterview Desk
As Lok Sabha polls approach, there is considerable ferment in one section of the population -- India's Adivasis, forming about 8.6 per cent of India's population. Things became particularly critical following the February 14, 2019 Supreme Court order, allegedly seeking to evict lakhs of tribals from their forest lands.

Industry in India "barely growing", export growth 0%, whither moral anchors?

Counterview Desk
In a sharp critique of the Modi government, the Indian Institute of Management-Ahmedabad (IIM-A), one of world renowned economist Prof Kaushik Basu, who is Professor of Economics and Carl Marks Professor of International Studies at Cornell University, has told students at the IIM-A’s 54th Annual Convocation on March 16, 2019 that they have a “special responsibility” on their shoulders, “the responsibility to reject narrow sectarianism, uphold scientific thinking, openness to new ideas, and freedom of speech.”

Gujarat model? Industrial effluents "invade" borewells, discharge coloured water in farms

By Rajiv Shah
In a major embarrassment for Gujarat model, of the 21 samples taken by officials of the state government's environmental watchdog Gujarat Pollution Control Board (GPCB) in two villages of Vadodara district and analyzed by its laboratory in Gandhinagar, the state capital, to find out pollution level in groundwater, 16 were assessed as highly contaminated – these were, in fact, found to be discharging reddish, brownish, reddish, or yellowish water.

Refugees as criminals? US govt report blames Amit Shah for calling Bangladeshis termites

Counterview Desk
The chapter “Freedom of Movement” of the US State Department’s “India 2018 Human Rights Report”, released recently, has criticized BJP chief Amit Shah for terming alleged Bangladeshis who may be in Assam as “termites”, because their names were struck down from the list of National Register of Citizens, under preparation in the state.
Pointing out that four million residents were excluded from Assam’s final draft list, leading to “uncertainty over the status of these individuals, many of whose families had lived in the state for several generations”, the report regrets, the Indian law does not even contain the term “refugee,” treating refugees like Rohingiyas as “any other foreigners.”
“Undocumented physical presence in the country is a criminal offense. Persons without documentation were vulnerable to forced returns and abuse”, the report says.
Text of the Freedom of Movement chapter: The law provides for freedom of internal movement, foreign travel, emigration, a…

Mental health: India's 95% patients "deprived" of medical care, treatment gap 70%

By Moin Qazi*
Among the many challenges India faces, the most underappreciated is the ongoing mental health crisis. Mental illness is actually India’s ticking bomb. An estimated 56 million Indians suffer from depression, and 38 million from anxiety disorders. For those who suffer from mental illness, life can seem like a terrible prison from which there is no hope of escape; they are left forlorn and abandoned, stigmatized, shunned and misunderstood.

Congress would win just 9 of 26 Lok Sabha seats: Gujarat Assembly segment-wise analysis

By Rajiv Shah
Even as the Congress plans its first working committee meet in Gujarat on February 28 after an almost 58 year gap, there is reason to wonder what is in store for India’s grand old party in a state which has been long been a BJP bastion – in fact ever since mid-1990s. Ahead of the then assembly polls in late 2012, talking with me, a senior Gujarat Congress leader, currently Rajya Sabha MP, frankly said he saw no reason why Congress would win.

"Pro-corporate" Supreme Court order on FRA would further marginalize Adivasis

By VS Roy David, JP Raju*
For millions of Adivasis and other traditional forest dwellers February 13, 2019 will go down in history as the day of apocalypse. This is like the proverbial Black Friday where millions of most marginalized people of India were ordered by malicious anti-people draconian Supreme Court order depriving them the life and livelihood by evicting them from their habitats.

Financial inclusion? Not micro-loans; India's poor "need" investment in health, education

By Moin Qazi*
India has grown into a global powerhouse. Its economy is soaring but the picture on the ground is still quite arid. The green shoots that you see are only a patch of its landscape. Most Indians are hapless victims of inequity. India is one country where intense poverty abounds in the shadow of immense wealth.