India sees 20% rise in dollar millionaires, despite GST-impact: Report
Despite adverse impact of GST implementation, India saw a 20% increase in both the number of dollar-millionaires and their wealth in 2017, a report said today. The report said the number of high net-worth individuals grew 20.4% to 2.63L people, while their collective wealth grew 21% to over $1 trillion. "India was the fastest-growing market globally," the report by French tech firm Capgemini said.
India's growth on HNI and wealth faster than global average
India's growth on both the number of HNIs and wealth is faster than the global average of 11.2% and 12%, respectively, the report said. It said the US, Japan, Germany, and China are the world's biggest HNI markets, adding that the show in 2017 has increased India's ranking to 11th. An HNI is defined as one who has investable assets of over $1mn.
Report calls adverse effect of GST 'transitory'
One of the major reasons for India's growth was an over 50% surge in market capitalization, along with an average 4.8% increase in realty prices and the 6.7% GDP expansion. The report called the adverse effect on wealth due to the implementation of GST in July "transitory". Other factors include like the monetary policy being steady, impact of demonetization wearing-off, and higher savings rate.
India's poorest half saw their wealth increase by just 1%
It can be noted that in January, a study had stated that the top 1% of the over 1.2 billion population had cornered 73% of the overall wealth generated during last year. Besides, 67 crore Indians comprising the population's poorest half saw their wealth rise by just 1%, an Oxfam survey ahead of the annual World Economic Forum had said.
