Wealth of India's super-rich dipped 4.4% to $12.83 trillion in 2020: Credit Suisse

While Mukesh Ambani, Gautam Adani and the Poonawallas saw a significant jump in their net worth, overall wealth of India's super-rich dipped 4.4 per cent to reach $12.83 trillion, stated a report. This dip is due to the rupee's fall in the pandemic-hit 2020.

According to a report by Credit Suisse Research Institute, the number of dollar millionaires in India fell from 7,64,000 in 2019 to 6,98,000 in 2020 solely due to the rupee's fall. Their cumulative wealth was down $594 billion from the previous year to $12.833 trillion.

India is home to 1 per cent of the global rich, whose number rose by 5.2 million to 56.1 million amid the pandemic. The report expects the number of millionaires in India to increase 81.8 per cent to 1.3 million by 2025.

Every adult Indian was worth an average $14,252 in 2020, which has been growing at an annual rate of 8.8 per cent since 2000. India has fared much better as compared to the global average that is 4.8 per cent.

There were as many as 4,320 ultra-high net worth individuals whose net worth was over $50 million.

Global wealth increased by $28.7 trillion to $418.3 trillion after losing $17.5 trillion in the market rout in the first quarter. An adult now needs over $1 million to belong to the global top 1 per cent, up from $988,103 in 2019, the report stated.

When it comes to the rich, ultra-high net worth group grew faster than the rest, adding 24 per cent more members.

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.

Wealth per adult rose 6 per cent to reach another record of $79,952. Countries that have been worst impacted by the pandemic have not been very affected in terms of wealth creation.

However, when it comes to short-term impact on global markets, the pandemic wreaked havoc in the first quarter of 2020 as $17.5 trillion was lost from total global household wealth between January and March of 2020. But by June-end share prices began to soar and it reached record levels by year-end. In the end, $28.7 trillion was added to global household wealth during the year, taking the aggregate global wealth up by $28.7 trillion to $418.3 trillion, the report said.

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