The nation is now the sixth-largest contributor to global wealth, says a Credit Suisse study released today. The US tops the chart
New Delhi: India may be home to a large number of poor, but the average wealth of an Indian has nearly tripled in the last 10 years to $5,500 (nearly
Rs2.70 lakh), making the country the sixth-largest contributor to overall global wealth, a study said today, reports PTI.
Still, the average wealth for Indians was way below the global average of $51,000 and just about 1% of the world’s highest per-adult wealth of $5,40,010 recorded in Switzerland, found a global wealth study by investment banking major Credit Suisse.
The wealth per adult in India has increased from $2,000 in the year 2000 to $5,500 currently, but the wealth distribution remains very disproportionate and poverty was still rampant in the country, Credit Suisse said.
“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.
As per the study, 43% of adults’ wealth in India is below $1,000, as against the world average of 27 percent.
Also, a very small proportion of the Indian population (just 0.4%) has net worth of over $100,000.
The report said that global wealth has grown by 14% since January 2010 to $231 trillion as on June 2011, driven by strong contribution from emerging economies including India.
India was the sixth-largest contributor to global wealth accumulation, while the US was the largest wealth generator in the world over the 18 month-period, adding $4.6 trillion to global wealth.
Asia-Pacific was the main contributor to the rise in global wealth during the period, with China, Japan, Australia and India among the top six contributors to global wealth accumulation.
Based on Credit Suisse's June 2011 estimates, there are 84,700 ultra high net worth individuals (UHNWIs) with net assets exceeding $50 million each globally.
The USA is at the top of the ladder with 35,400 UHNWIs, followed by China with 5,400 UHNWIs, Germany (4,135), Switzerland (3,820) and Japan (3,400), Russia (1,970), India (1,840), and Brazil (1,520).
In the year 2011 alone, India has acquired 34,000 new millionaires, however, a larger share of these wealthy individuals “may be more properly regarded as residents of other countries” the report said.
“These are times of unprecedented economic change, and a radical reconfiguration of the world’s economic order is taking shape. Emerging markets are important drivers of the global recovery and remain the key growth engines of global wealth,” Credit Suisse Chief Executive Officer Asia Pacific Osama Abbasi said.
Credit Suisse further said that the personal wealth in India was heavily "skewed" towards property and other real assets like most countries in the developed world, and makes up for 88% of estimated household assets.
Personal debts are recorded at only $258 per adult, Credit Suisse said.
In term of average wealth per adult in 2011, Switzerland, Australia and Norway are the three richest nations in the world, with Switzerland recording the highest average wealth per adult at $540,010—the only country to exceed $500,000.
In Asia Pacific, Singapore follows Australia as the second wealthiest nation in the region and fifth in the world in terms of average wealth.
Nifty may move sideways with a positive bias. It has to close decisively above 5,170 for an upmove
All Asian markets opened on a positive note today, and most of them ended in the green on unconfirmed media reports that Europe’s key bailout fund will be expanded by close to $2.50 trillion. US markets also had closed in the positive yesterday, on reports of agreements to strengthen the beleaguered euro-zone’s rescue fund. However, a UK newspaper report indicated on Tuesday that Germany and France had “agreed to leverage the euro-zone’s bailout fund to over 2 trillion euro as part of a ‘comprehensive plan’,” but “a senior euro-zone source poured cold water on the report.”
Domestic indices Sensex and Nifty also opened upwards due to these (unconfirmed) reports. The Sensex was 135 points up at 16,883 and the Nifty was 43 points up at 5,080. Both the Sensex and the Nifty hit their intraday lows at the beginning of the morning session at 16,874 and 5,075 respectively. These indices hit their intraday highs at the close of the session at 17,107 and 5,148. Both benchmarks were able to make a higher high and higher low today. Today’s gain wiped out all the losses of the past two-day fall. Yesterday, we had said that prices might head lower, but domestic bourses looked up due to the reports of a probable EU debt-fix. At close of trade, the Sensex ended 337 points up (2.01% gain) at 17,085, while the Nifty made a 20-day (including today) high, closing at 5,139 (up 102 points) or 2.02 percent. The Nifty may move sideways from now on with a positive bias. But it has to close decisively above 5,170 for an upmove.
After yesterday’s warning to France that its triple-A rating could be at risk, Moody’s came out with yet another negative blow today—the ratings agency cut Spain's sovereign ratings by two notches, saying high levels of debt in the banking and corporate sectors leave the country “vulnerable to funding stresses”.
All the BSE sectoral indices ended in positive territory, the maximum gains being seen in BSE Realty (up 3%) followed by BSE Bankex (2.69%). The least to gain was BSE Consumer Durables (up 0.84%). All the Sensex 30 stocks ended in the green. The top five gainers were DLF (up 4.16%); Hero MotoCorp (up 4.13% due to good results announcements); Larsen & Toubro (3.74%); Jaiprakash Associates (up 3.33%) and Wipro (3.23%). Nifty 50 stocks had 48 gainers and 2 losers—Tata Power was down 0.30% and Sesa Goa fell 2.56 percent. Today’s gain on the NSE was on the back of today’s trade of 54.28 crore shares, close to its 10-day average of 54.44 crore shares.
Despite the good jump in the index, the NSE had an advance-decline ratio of a weak 87:387. At home, there was a mix of good and bad news. Finance Minister Pranab Mukherjee today said that foreign direct investment (FDI) in April-August period has doubled to $16.80 billion. However, he warned that the global slowdown would impacting India’s growth prospects, but expressed hope that inflation will start moderating from December. He added that the tight monetary policy regime followed by the RBI (Reserve Bank of India) has also impacted growth during the current fiscal.
Mr Mukherjee also said that the G-20 nations have started thinking over the issue that the euro-zone nations should first "credibly assess" their own solvency issues before the international community could extend any help.
Countries outside the euro-zone have warned of the damage the European crisis was already doing to their economies and underlined the urgent need for action from the 17-nation single currency area.
ONGC was up 1.80% after the additional secretary in the department of disinvestment, Sidhartha Pradhan, today said that ONGC's follow-on public offer (FPO) may take place next month, originally deferred due to weak market conditions. The government plans to divest 5% stake in ONGC through an FPO.
The government aims to raise Rs40,000 crore through the sale of stakes in state-run companies this fiscal year through March 2012 (FY 2012), but it has been able to raise only about Rs1,145 crore so far due to weak market conditions.
SBI was up 2.99% as Banking Secretary DK Mittal said today that the state-run lender will not raise funds through a rights share issue this fiscal year and the government, the largest shareholder, will capitalise the bank by other means.
The IRDA monthly journal focuses on customer grievances and the ways in which to deal with them. While a number of issues have been acknowledged, the way in which to deal with them may remain on paper, unless insurance companies follow guidelines—and if IRDA acts when insurers don’t
The Insurance Regulatory and Development Authority (IRDA) October journal has its focus on ‘Grievance Redressal’. While customer problems have been acknowledged, the ground reality suggests that solutions are yet to be implemented. The biggest proof of it is that a few days back, IRDA came up with a circular asking life and non-life companies not to reject claims on technical grounds of delay in filing (See: IRDA asks insurers not to reject health insurance on a routine basis, but don’t pin much hope on this directive ).
The primary target of this circular is mediclaim insurers—some of whom have stringent filing deadlines. This has led to a lot of complaints to IRDA from policyholders for genuine claims rejection.
The IRDA journal has an article, ‘Managing the Pain Points for the Customer’ by the general manager (GM) of United India Insurance. Here are some of the statements made by the GM—and the ground reality, which in a few cases, pertains to United India Insurance itself: