The number of dollar millionaires in India fell from 7,64,000 in 2019 to 6,98,000 solely because of the rupee's fall
In spite of Mukesh Ambani, Gautam Adani, the Poonawallas and many other Indians seeing a jump in their net worth in the pandemic-hit 2020, overall wealth of the country's super-rich dipped 4.4 per cent to USD 12.83 trillion in the year due to the rupee's fall, and so did their tally, says a report.
The number of dollar millionaires in India fell from 7,64,000 in 2019 to 6,98,000 solely because of the rupee's fall, while their cumulative wealth stood at USD 12.833 trillion, down USD 594 billion or 4.4 per cent from the previous year, according to the report by Credit Suisse Research Institute.
The country is home to just 1 per cent of the global rich, whose number rose by 5.2 million to 56.1 million in the COVID-hit year.
However, the report expects the number of millionaires in India to soar 81.8 per cent to 1.3 million by 2025.
Each adult Indian was worth an average USD 14,252 in 2020, which has been growing at an average annual rate of 8.8 per cent from 2000 through 2020 as against the global average of 4.8 per cent.
There were 4,320 ultra-high networth individuals with net worth exceeding USD 50 million.
Reliance Industries Chairman Mukesh Ambani had earned ₹90 crore every hour or ₹2,77,700 crore in 2020, taking his overall wealth to ₹6,58,400 crore, according to the Hurun India Rich List. Adani Group Chairman Gautam Adani's wealth jumped USD 16.2 billion in 2020 to USD 67.6 billion as of mid-May, according to a Bloomberg tally.
Global wealth climbed by USD 28.7 trillion to USD 418.3 trillion, after losing USD 17.5 trillion in the market rout in the first quarter, while the number of overall global millionaires jumped by 5.2 million to 56.1 million, as per the Credit Suisse report.
As a result, an adult now needs over USD 1 million to belong to the global top 1 per cent, up from USD 988,103 in 2019.
For the first time, over 1 per cent of all global adults were in nominal terms dollar millionaires in 2020, it added.
Among the rich, the ultra-high networth group grew even faster, adding 24 per cent more members -- the highest increase since 2003.
Those with USD 10,000-100,000 have seen the biggest rise since 2000, more than trebling from 507 million in 2000 to 1.7 billion in mid-2020.
According to Credit Suisse economists, wealth creation in 2020 was largely immune to the challenges facing the world due to the actions taken by governments and central banks to mitigate the economic impact of the pandemic.
Total global wealth grew 7.4 per cent and wealth per adult rose 6 per cent to reach another record of USD 79,952. Overall, the countries most affected by the pandemic have not fared worse in wealth creation.
However, the pandemic had a profound short-term impact on global markets in the first quarter of 2020 as USD 17.5 trillion was lost from total global household wealth between January and March of 2020, or a fall of 4.4 per cent. But this was reversed by end-June when share prices began to soar and reached record levels by year-end. Housing markets also benefited from the prevailing optimism.
The net result was that USD 28.7 trillion was added to global household wealth during the year, taking the aggregate global wealth up by USD 28.7 trillion to USD 418.3 trillion, the report said.
While North America added USD 12.4 trillion, USD 9.2 trillion was added in Europe, China gained USD 4.2 trillion and the Asia-Pacific region (excluding China and India) added another USD 4.7 trillion.
Latin America was the worst performer, with total wealth loss of 11.4 per cent or USD 1.2 trillion, followed by India with a loss of 4.4 per cent.
The report also projected a 39 per cent rise in global wealth by 2025 at USD 583 trillion, with the number of millionaires reaching 84 million.
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