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D.Muthukrishnan (Muthu), Certified Financial Planner- Personal Financial Advisor

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How many people in India are rich in 2014?

Posted by Muthu on October 15, 2014

For last few years, I’ve been giving a yearly update on the rich people in India.

It has sort of become an annual ritual now.

For last 2 years it is based on my reading of ‘Global Wealth Report’ published by Credit Suisse.

They have recently published this year’s report.

I want share some general data and what interest all of us; particular to India.

For the purpose of the report, they have taken into account only adult population.

We continue to be a very poor country. So being rich is all the more significant in our country.

For dollar to rupee conversion, the rate assumed is 1 USD = Rs.60.

A country is considered rich, if the average wealth per person is over $100,000 (Rs.60 lakhs).

The richest country in the world is Switzerland with average wealth per person of $581,000 (Rs.3.49 crores).

The top ten richest countries in the world are Belgium, Denmark, Norway, Singapore, Sweden, Switzerland, Australia, France, UK and USA.

India’s average wealth per person is $4645 (Rs.2.79 lakhs) and the median wealth is $1006 (Rs.60 thousand).

An average Swiss citizen is 125 times better off than an average Indian citizen.

Median wealth of 60K implies half of our population is not even worth Rs.60,000. In fact 95% of the population in India has a wealth below $10,000 (Rs.6 lakhs).

Inequality is a way of life. This is not only true for India but holds good for other countries as well.

Globally, the top 1% of the population owns close to 50% of the wealth.

Top 10% owns 87% of all wealth.

The bottom 50% of the populations barely owns 1% of global wealth.

21% of the global population is classified as middle class- with a wealth of above $10,000 (Rs.6 lakhs) to $100,000 (Rs.60 lakhs).

There are 128,200 individuals in the world who are worth more than $50 million (Rs.300 crores).

There are 45,200 individuals in the world who are worth more than $100 million (Rs.600 crores).

The total wealth of the world is $263 trillion.  India’s total wealth is $3.6 trillion. We are 18% of the world’s population but have wealth of only 1.36%.

2.38 lakh Indians are members of top 1% of global wealth holders.

3.8 million Indians are members of top 10% global wealth holders.

1.82 lakh Indians are worth $ 1 million (Rs.6 crore) or more.

2.3 million (or) 0.3% adult Indians are worth $100,000 (Rs.60 lakhs) or more.

So only top 0.3% of the India’s population can be classified as rich according to the global yard stick of wealth => $100,000

Property and other real assets like gold contribute 86% of Indians wealth.

I’ve tried my best to provide as minimal and essential data as possible.

It’s a 64 page report with numerous data and relevant information.

If you’re reading this, you are most likely to be among the top 1% of the Indian population.

As Buffett said, if you are among top 1%, you owe at least something to the remaining 99%.

Count your blessings.

Help the less fortunate.

10 Responses to “How many people in India are rich in 2014?”

  1. Rahul said

    Any person owning a 2000 sqft flat in big cities is already crorepati….Imagine how many persons in just a single city like Mumbai will fall in this category…So how can be only 0.03% indians fall into category of > 60 Lacs… Please explain? Am i missing something..

    • Muthu said

      Good query. I’m not sure of the details and methodology they follow. Do they include or exclude primary residence?

      A house worth Rs.1 crore, with a loan of Rs.70 lakhs- would actually have a home equity of only Rs.30 lakhs.

      Most of the homes and cars in India are owned by banks and NBFCs.

      I would suggest that you use http://www.globalrichlist.com/ and see where you stand.

    • Sourabh said

      Residential houses does not account to wealth. One does not sell his kidney to be rich.I m just trying to say they may or may not be that rich as we think they are.

  2. srivatsa said

    Does it account to a single person or whole family

  3. akhil said

    ya its hard to belive .03 percent. Here in kerala i cant find a person below worth 6 lakh nd the majority of them had a worth more than 60 lakh.if a person owe a 2 cent of land in most place in kerala if its urban or rural den he owe more than 6 lakh!

  4. Hi mutthu your articles are thought provoking. I am eagerly awaiting for your latest reports on same subject. Credit Suisse reports on global wealth are likely to get published by mid Oct but before that I expect your articles charts on income & wealth distribution in India and various income classes in india and globe.

  5. Rakesh said

    Really Nice Reports sir 🙂 Do you have the latest report for the year 2016 or 2015???

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