The Credit Suisse Global Wealth Report 2021 has been released and it shows that the net worth per adult fell down by 6.1 percent in terms of dollars. In rupee terms, it fell down by only 3.7 percent. The loss in dollar terms was magnified due to the exchange rate depreciation. Under the fixed exchange rates, the loss would have been 2.1 percent only.
The total wealth in India fell by $594 billion. In percentage terms, it fell by 4.4 percent.
The financial assets per adult show numbers have increased by 2 percent while non-financial assets have fallen by 8.4 percent. This has led to a 6.2 percent decrease in gross assets and a 7.4 percent fall in debt.
However, Credit Suisse forecasts a positive outlook for India.
Shortage in India's Millionaires
The report states only six countries recorded drops of more than $100 billion in total wealth and India was one of them. India's fall was $594 billion. The other country that lost more than $500 billion was Brazil at $839 billion.
The number of millionaires also reduced for India. Second, to Brazil, India lost 66 percent of its millionaires despite enjoying the status of owning 1 percent of the total dollar millionaires in the world. In 2020, India had ranked 6th globally under the Ultra High Net Worth individuals category.
The density of millionaires was also the lowest in India at 0.1 percent. Indonesia too followed suit in 2020. Russia stood at 0.2 percent, Mexico at 0.3 percent and China at 0.5 percent. Switzerland, the USA & Australia topped the list with 14.9 percent, 9.4 percent, and 8.8 percent, respectively.
The report states the absence of income support has largely affected vulnerable groups like women, minorities, and young people generating wealth shock in 2021. Africa too has been mentioned on similar lines with India.
Credit Suisse predicts the coming five years to be positive for India as the pandemic would be under control and the memory fading away from the pain and grief that India and the world encountered.
India's growth is pegged at 59.0 percent effectively raising wealth per adult to $20,888. Even the total household wealth in India is expected to overtake the UK in this period. The number of millionaires will also raise to 1.3 million, an increase of 82 percent.
First Published: IST