According to a study undertaken and figures compiled by the Economic Intelligence Union and Barclays Wealth, India will beat China by 2017, in having more millionaires in dollars terms than China
India will have over four lakh millionaires in dollar terms by 2017 with an aggregate wealth of $1.7 trillion.The present enormity of the wealth can be compared to its present capitalization, which is between $ 1.2 trillion and $ 1.4 trillion.On the other hand , China will just have half that number (around 2 lakh) of milluionaires with an aggregate wealth of $ billion.
The main drivers for India’s growth would be the rising entrepreneurship, growing economy, value unlocking and the promoters’ wealth.
The Indian mass affluent population will grow from negligible to nearly 20 lakh people in 2017.There will be around 19 lakh householdsthat will have half a million dollars each and 2.9 crore households that would have $ 100,000 each in wealth. The Indians are not managing their wealth creation for optimum results feels Satya Narayan Bansal, India Chief Excutive,Barclays Wealth. More than half the wealth of India’s rich is in physical assets, 43 % is in property and then comes accumulated gold estimated at $ 200 billions which is equal to half of the deposite in the banking system.There is a shift to financial assets from physical Barkleys is shortly opening their office in India, to tap the high net and ultrahigh net individuals who could have a total wealth of $ 2 millions to $ 3 millions.The new wealth that has been created is higher than the inherited wealth in India.
No doubt Barkleys Wealth has given a rosy picture about India. But, Barkleys study has not taken into account the present strength of Indian population and what it would be in the year 2017.Moreover, Barkleys research has actually proves the growing inequality and the widening gulf between the haves and the have-nots in the Indian society. To compare India, a parliamentary democracy, whose economy is capitalistic, to be specific, a mixed economy, with that of China, whose economy is based on a totalitarian Communist form of Government is not proper and simply defies logic. It is also an enigma to note how China will have 2 million millionaires, by 2017.