Friday, October 12, 2012

Millionaires in India to keep swelling

As per Credit Suisse's Global Wealth Report, the number of millionaires in emerging economies is expected to jump over the next few years. In China the number could double to almost 2 m by 2017. And right home in India, as many as 84,000 Indians are expected to become millionaires by 2017.

This is a huge increase of 53%! While the Indian middle class is seeing rising wealth, there is still a great deal of poverty in the country. This is reflected by the following statistics. Almost everyone in India (around 95%) has wealth below US$ 10,000. Only a very small proportion of the population (just 0.3%) has a net worth over US$ 100,000. The falling GDP growth rate has seen India shedding US$ 700 bn from its household wealth during mid-2011 to mid-2012 period. This is the steepest fall seen in Asia. It totals 50% of the total erosion that the continent has seen over the period. Well, we just hope that this money has been spent towards productive purposes instead of conspicuous consumption. Anyway, the million dollar question is whether you will be in the top 0.3% by 2017.

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