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India's rich got richer under UPA-II, will get wealthier under Modi govt

business Updated: Jun 17, 2015 11:51 IST
HT Correspondent
HT Correspondent
Hindustan Times

In signs of rising disparity in wealth distribution, only 928 households own a fifth of India's private wealth, according to a report by the Boston consulting group.

The percentage of private financial wealth those 928 households own is 20%, the BCG report titled 'Global Wealth 2015: Winning the Growth Game' said.

The number of such ultra high net worth households stood at 284 in 2013, and is projected to account for 24% of the country’s financial wealth by 2019.

India is currently behind the US (5,201), China (1,037) and the UK (1,019) in the number of such households.

Relatively less prosperous households with financial wealth of more than Rs 6.2 crore own another 36% of the country’s private financial wealth. The share of these households in financial assets has gone up from 33% of the country’s total private financial wealth in 2009 to 36% in 2014, and is further projected to go up to 38% by 2019.

The report did not specify the number of such households in 2014 but had listed 175,000 millionaire households in 2013.

India led the growth of private wealth in the Asia-Pacific region (excluding Japan), which saw a steep 29% rise in 2014 to $47 trillion (Rs 2,914 lakh crore).

The region is also now home to more millionaires than any other continent except the North America. It is projected to hold 34% of the global wealth in 2019, and with an estimated annual growth rate of almost 10%, private wealth in the Asia-Pacific region is slated to rise to $75 trillion (Rs 4,650 lakh crore) in 2019.

“At such a pace, the region is expected to overtake North America as the world’s richest region in 2016, with $57 trillion (Rs 3,534 lakh crore) in private wealth,” the report said.

“Growth in wealth in the Asia-Pacific region was driven heavily by the continued economic expansion of its two largest economies China and India,” it added.

Private wealth in China and India also reflected in solid market gains, driven mainly by investments in local equities. China’s equity market rose 38% last year while Indian markets gained 23%.