India’s household wealth grew only by 2.6% in 2018 on account of currency depreciation

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For the 12-month period until June 2018, India’s household wealth grew only by a modest 2.6% on account of a significant decline in rupee value. This information was reported in the 2018 Global Wealth Report released by Credit Suisse Research Institute. India’s growth is considerably lesser than the overall global increase of 4.6%.

household wealth

India’s total household wealth for this period was around $6 trillion during this period. On an individual basis, wealth per adult was estimated to be around $7,020. Keeping the exchange rates constant, India’s wealth increased by 9.7% during this period. Nearly 91% of India’s household assets estimated during this period was in the form of real assets and other properties.

Despite the modest growth, the report projected that India’s household wealth is likely to grow at the rate of 8% over the next five years and it is likely to touch $8.8 trillion. On a global level, strong growth was witnessed in the United States and China which took the first and second spots, respectively.

According to Credit Suisse Asia-Pacific’s Chief Investment Officer, John Woods, wealth trends in some of the major economies like India and Australia have suffered due to currency depreciation against the US dollar.

During this period, global household wealth increased by about $14 trillion to touch $317 trillion. Wealth per adult increased by 3.2% to reach a record high of $63,100. The United States is the largest contributor to this data by adding $6.3 trillion during this period. The total household wealth of the United States touched $98 trillion during this period.

China took the second position with a significant increase in household wealth. One of the notable aspects mentioned in the report is that women now control 40% of the global wealth. The report noted that the wealth of women increased considerably during the 20th century.

Source: Moneycontrol

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