A new report has pointed out that the number of wealthy people in India has increased by almost 6% despite the devastating impact of the Covid-19 pandemic.
The strong performance of global stock markets as well as the stimulus measures announced by governments around the world have contributed to greater wealth creation. (Photo: Reuters)
The wealthy population has been increasing in India since 2020 despite the devastating impact of the Covid-19 pandemic on the economy. A report from Capgemini suggests that the number of high net worth people grew 5.9% last year, slightly better than average growth across the Asia-Pacific region.
The “World Wealth” report indicated that the population of wealthy people has increased by 6.3% worldwide. In total, the wealth of high net worth individuals increased 7.6% last year, reaching nearly $ 80 trillion.
According to the report, the strong performance of global stock markets along with stimulus measures announced by governments around the world have contributed to higher wealth creation around the world. The measures also helped North America overtake the Asia-Pacific region to become the 2020 leader in terms of high population and high net wealth.
The report adds that high net worth individuals have become more involved in their investments over the past 25 years and are looking to expand their wealth through broader advisory support.
INCREASE IN REVENUES, INEQUALITY OF WEALTH
On the other hand, the wealth of the world’s poorest population has collapsed since last year due to the Covid-19 pandemic. The wealth gap has widened dramatically in countries like China and India.
In both countries, many billionaires have been successful in increasing their net worth by innovating in their businesses and reducing costs. However, the poorest strata of society suffered severe income losses and struggled to make ends meet.
explained | How a raging pandemic is widening India’s wealth gap
A study conducted by the Center for Sustainable Employment (CSE) at Azim Premji University earlier this year suggested that there had been an alarming increase in poverty in India after the first wave of the Covid-pandemic. 19.
The study, titled State of Working India 2021 – One year of Covid, documents the impact of one on jobs, income, inequality and poverty.
One of the study’s most surprising observations was the fact that at least 23 crore Indians fell below the national minimum wage poverty line due to the devastating economic impact of the pandemic. The incomes of these people fell below Rs 375 per day – below the national minimum wage threshold – after the pandemic.
Read also | Unemployment, rising food prices: double whammy for India’s poor in the midst of a pandemic
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