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Majority of Indians in lowest wealth group: BCG
Why it is in news?
- A new report shows that 55% of the total wealth in the country is with those having less than $1,00,000 net worth.
- In contrast, only 18% of the global wealth is with those in this category.
- The Boston Consulting Group’s (BCG’s) Global Wealth Report 2018 also shows that those with more than $1 billion in personal wealth, have cornered 16% of total wealth in India. This is the second largest category under the wealth distribution head.
- The report goes on to estimate that personal wealth grew at 12% from 2017 to 2018 in India, compared with 15% in the previous year.
- Overall, the report estimates a 13% CAGR (compounded annual growth rate) from 2017 to 2022.
- This matches with the growth rate in Asia (excluding Japan) for the same period but is much faster than the 7% growth in personal wealth estimated for the world.
- The character of personal wealth in India is also slowly changing, according to the report.
- While investable wealth — listed equity, bonds, investment funds, currency and deposits and other smaller asset classes — accounted for 64% of total personal wealth in 2012, this proportion is expected to increase to 70% by 2022.
- Further, the category that has and will see most growth is investment in equities and investment funds, the report showed.
- While this category made up 17% of the personal wealth in 2012, it increased to 22% in 2017, and is expected to further increase to 32% by 2022.