Financial wealth in India jumps 11% in pandemic year to $3.4 trillion: Report

Despite the coronavirus outbreak, India’s financial wealth increased 11% to USD 3.4 trillion in 2020, a worldwide consultant projected on Tuesday.

The 11% increase in financial wealth was comparable to the compound annual growth rate for the five years through 2020, according to the BCG NSE 4.74 percent research.

Financial wealth is defined as an individual’s overall worth, excluding actual assets and liabilities.

It’s worth noting that, following a steep fall in the early days of the pandemic, stocks have continued to climb since April last year, prompting concerns from all corners. Concerns have also been made regarding an increasing income imbalance as a result of the pandemic.

The survey said that the following few years will see a greater expansion of financial wealth, although at a slower rate of 10% per year, bringing the total to USD 5.5 trillion by 2025.

“… The analysis demonstrates that prosperity and wealth have grown significantly during the crisis and are projected to continue to grow in the coming five years,” the consultancy business said in an official statement.

India is predicted to continue to lead the percentage increase of individuals with fortunes greater than USD 100 million through 2025, the report stated, adding that the number will nearly double to 1,400 in the next five years.

Indians’ cross-border wealth, defined as financial wealth booked in a jurisdiction other than their domicile, increased to USD 194 billion in 2020, accounting for 5.7 percent of total financial wealth. According to the organization’s forecasts, the percentage will rise to 6.3 percent by 2025.

On the asset allocation side, currency and deposits account for about half of onshore financial wealth deployment, followed by equities and life insurance.

Real assets, which include real estate, consumer durables, and valuables such as non-monetary gold and other metals valued at current prices, increased by more than 14% to USD 12.4 trillion in 2020, up from USD 12.4 trillion a year ago.

The analysis estimates that real assets will rise at an annual rate of 8.2 percent to USD 18.5 trillion by 2025.

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Krishna Rath is a SEBI Registered Investment Adviser, and since 2015 has been educating netizens on investments and insurance. Krishna is a fee only SEBI RIA and is Odisha's first SEBI RIA. With background in IT, Krishna is changing the advisory space with new innovations in AdvisoryTech.

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