Disparity among Indian rich higher than elsewhere
In drop-down of wealth, India has one of the worst records. As per the records of last year for every one billionaire in India, there were just 26 ultra high net-worth individuals (UHNIs) whose net assets are over $30 million without their primary residence.
For every billionaire in Japan there were 609 UHNIs. In Brazil and South Africa, which are equivalent budding markets, the ratio was 1:129 and 1:119 respectively. Worldwide, for every one billionaire, there are 100 UHNIs.
Wealth in India is getting concentrated among a handful of the countries richest as per ‘The Wealth Report of 2014′ by global real estate consultants Knight Frank.
Samantak Das, chief economist and director of research and advisory services, Knight Frank India alleged ,”Wealth is getting skewed towards billionaires who in turn aren’t able to give birth to more millionaires. This clearly indicates that while economic growth has been there, from an equity standpoint, the disparity is increasing”.
China and Malaysia are the two countries in comparison to India where the ratio of billionaires to millionaires is 1:44 and 1:37 respectively.
As per the estimation of the report in the past decade (2003 to 2013), in India the number of billionaires grew from 23 to 60-a growth of 161%-and the number of UHNIs grew from 598 to 1,576, a growth of 164%. Delhi accounts for 9% of this wealth, whereas Mumbai accounts for close to 37%.
In the past decade, the growth of this Richie Rich club is recognized to the economic growth of over 8% that India witnessed.Das said, “Even though 2008-2009 was a bad phase, it didn’t really erode much of their wealth.”
Estimation of Knight Frank
As per the estimation of Knight Frank the billionaire-to-UHNI ratio will further twist to 1:22 over the next decade since there will be a significant increase in the wealth of Indian billionaires.
According to a study by 2023, India will have the fourth largest concentration of billionaires in the world after the United States, China, and Russia. In the last year the country constituted sixth largest pool of billionaires.
Conversely in2023, in the world India would rank 19th on the UHNI count, the same rank as it held last year.
Owed to the ‘base effect’, Knight Frank alleged that in the next decade there will be a decrease in the growth of billionaires and millionaires in the country to around 98% and 99% respectively. Though the growth rate will be way higher than the global average of 38% for billionaires and 28% for millionaires.
Source: Times of India
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