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INDIA’S HNW WEALTH GROWS FASTER THAN GLOBAL WEALTH

The amount of wealth held by high net worth individuals in India has increased faster than that held by rich people globally.

That is according to the India Wealth Report, released by Indian wealth management firm Karvy Private Wealth. It found that while the fortunes of HNW individuals internationally grew by around 9% during the year, money held by Indian rich increased by more than 11%.

This made India one of the fastest-growing HNW populations in the world, accounting for 1.2% of global wealth, said the report.

It is also likely to increase further, with the research suggesting that collective wealth held by Indian HNW individuals will triple to Rs 249 lakh crore (€3.51 trillion) by 2016, up from the current Rs 86.5 lakh crore.

Much of the wealth was thanks to the increase in investment in fixed deposits and bonds, said the report. Fixed deposits, held in banks that offer high interest rates, accounted for more than 30% of individual wealth.

Second in demand was investing in high-risk, high-return assets, including direct equity. Around 29% of money, or €422 billion, was held by the rich in direct equity, said the report.

Karvy Private Wealth also touched upon the rising demand for gold, estimating that Indians hold more than 18,000 tonnes of the metal, which at today’s price levels, is worth nearly €710 billion.

While demand for gold has risen by 13% on average over the past 10 years, said the research, it will likely increase by 30% next year.


Source: http://www.campdenfo.com (RASHMI KUMAR)
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The Debate over FDI in Retail

Owing to the unrelenting stand of its allies and the impasse it had reached with its political opponents, the government has been compelled to put on hold FDI in retail. If the objective of this policy initiative was to restore people's confidence in the government's commitment to economic reforms and earn back its political authority, the end result is far removed from the desired goal.

FDI investments in retail were subject to stringent stipulations including permission only to enter cities that have a population of above one million, a minimum investment of $100 million, of which 50% is to be used on back-end infrastructure and the requirement that 30% of the goods must be sourced from small-scale industry.

Voices of dissent, both within the UPA and from the Opposition, were heard right after the announcement. Confusion also arose on what constituted back-end infrastructure and whether sourcing from small-scale industry needed to be done domestically or could be from anywhere. And, over the next few days, there was turmoil in Parliament.

Compelled to take corrective action, the government tried to run a campaign on the benefits of FDI in retail: new manufacturing activities; new jobs, lower prices of products; benefits for the farmers et al. But none of this cut any ice with the mass opposition to FDI in retail. By this time, it was reported that perhaps even the government and the Congress party were not on the same page.

Eventually, the government was forced to announce that the decision has been put on hold till a consensus on the matter is reached. A threadbare analysis of the sequence of events is important to examine whether coalition politics can alone be blamed for the government's recent predicament.

Source: Economic times
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Karvy Private Wealth Case Study- Corporate Professional

Case study established professional

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