Amid economic slowdown India’s wealth grew by 5.2% according to report by Credit Suisse. This reflects further on the fact that India’s recession hit economy might not be as bad as reported by media.
Credit Suisse Report Institute (CSRI)
The report depicts the wealth of the globe, accounting for 5.1 billion people’s domestic wealth. This review is the most reliable, all-inclusive and up- to date piece of data regarding global household assets.
The tenth-year edition portrayed an increase of 2.6% to USD 360 trillion in global wealth. Thus, the wealth per adult raised to a new high of USD 70,850 with Switzerland bagging the highest gains. Further, the analysis displayed significant contributions by the US, China, and Europe towards wealth gain with USD 3.8 trillion, USD 1.9 trillion and USD 1.1 trillion respectively.
Credit report on India
CSRI has predicted a gradual growth in India’s wealth since a centenary. However, it faced a minor drop in 2008 due to the global financial crisis. This year wealth grew by 5.2%, against 11% average growth in the past 20 years. Additionally, India is a large contributor to the global wealthy list. Moreover, it showed that property wealth dominates personal wealth in the nation. Although the India’s wealth overall is rising, everyone has not contributed to the advancement. While 78% of the adult population has wealth below US 10,000. On the contrary, 1.8% of adults have a net worth of over USD 100,000.
Based on the above mentioned facts, income inequality in India is escalating. The report suggested that the country facing wealthy poverty and the net worth is still on the verge of growing.
Overall wealth or GDP
This is a debate that has intensified over the years. Particularly revolves over a question, is GDP is an accurate measure to reflect a country’s economy. Fueling this debate is a fact the developed nations have much lower GDP growth compared to developing nations. For instance, India’s GDP growth rate is 5-6%, while the US is 2%. India’s wealth growth does not depict on the GDP of the country.
The world Bank report suggested that wealth as an indicator of economic expansion gives information on the likelihood of wealth rise in the long term. Whereas, GDP does not include certain assets that are critical for growth thereby can be considered as a set-back.