Almost all Indians have wealth below $10,000: Credit Suisse

MUMBAI: A very small portion of Indians have a net worth above $100,000. The country has 2.4 lakh high networth individuals ( HNIs), of which 1,500 have wealth over $50 million and 700 with more than $100 million, according to a recent Credit Suisse global wealth report.

The rupee depreciation in 2011-12 caused a 20% erosion of wealth in dollar terms. However, adjusted to exchange rate movements, wealth growth among Indians has been steady since 2000, increasing at an average annual rate of 8%, the report said. “Wealth per adult rose from $2,000 in year 2000 to $5,300 in 2011. Given the 29% rise in the adult population, aggregate wealth more than tripled during the same period,” said Credit Suisse.

Personal wealth in India is heavily skewed towards property and other real assets, which make up for 84% of estimated household assets. Personal debts are recorded at only $162 per adult. “While wealth has been rising strongly in India, and the ranks of the middle class and wealthy have been swelling, not everyone has shared in this growth and there is still a great deal of poverty,” the report said, adding, “this is reflected in the fact that almost everyone in India (95%) has wealth below $10,000.”

The report states that globally from mid-2011 to mid-2012 aggregate global household wealth fell by 5.2% in current dollar terms to $223 trillion due to the economic uncertainties of the past year.

Relative stability of the US economy has led to an appreciation of the US dollar against most currencies. “The impact is especially apparent in Europe, raising the aggregate wealth loss to $10.9 trillion, by far the largest contribution to the total global loss of $12.3 trillion. Asia-Pacific was the other big regional loser, shedding $1.4 trillion,” the Credit Suisse report said.