India among top four wealth creators in world

New Delhi: India has emerged among the four fastest wealth creator countries in the world and its growth momentum is expected to gather further steam going forward, a global study has said.

In its annual Global Wealth Report, management consulting firm Boston Consulting Group has listed the US, China, the UK and India as the nations showing the largest absolute gains in wealth in 2010.

Global wealth continued a solid recovery in 2010, driven by growth in nearly every region and registered an increase of $9 trillion, to a record of $121.8 trillion.

Tjun Tang, BCG partner and co-author of the study, believes global wealth is expected to grow at a compound annual rate of 5.9% from the end of 2010 till 2015 to about $162 trillion, driven by performance of capital markets and the growth of GDP in countries around the world.

“Wealth will grow fastest in emerging markets. In India and China, for example, it is expected to increase at a compound annual rate of 18 per cent and 14%, respectively,” Tang said, adding that the Asia-Pacific region’s share of global wealth (ex Japan) was projected to rise from 18% in 2010 to 23% in 2015.

In Japan, however, the amount of wealth is expected to decrease slightly in 2011 and then grow slowly for several years owing to the lingering impact of the recent disaster. In 2010, North America was the world’s richest region, with $38.2 trillion in assets under management, nearly one-third of the global wealth. In Asia Pacific (excluding Japan) wealth grew at the fastest rate, at 17.1%, whereas in the West Asia and Africa, it was 8.6%, Latin America (8.2%).

Millionaire households increased by 12.2% in 2010 to about 12.5 million, BCG said, adding that the US was home to most millionaire households (5.2 million), followed by Japan, China, the UK, and Germany, while Singapore continued to have the highest concentration of millionaire households.

Three of the six densest millionaire populations were in the West Asia: Qatar, Kuwait and the United Arab Emirates. In terms of ultra-high-net-worth (UHNW) households- defined as those with more than $ 100 million in assets - the US has the largest number (2,692).

Saudi Arabia has highest UHNW concentration, measured per 100,000 households, at 18, followed by Switzerland (10), Hong Kong (9), Kuwait (8), and Austria (8).  “Strong performance of the financial markets accounted for the lion’s share (59%) of growth in assets under management. From the end of year 2008 through 2010, the share of wealth held in equities

Western economies can learn from India: Amartya Sen

OXFORD: At a time when several economies in the Western world are facing severe crisis, Nobel laureate Amartya Sen believes that they can learn from countries such as India and China which are witnessing rapid economic growth.

Launching the Sanjaya Lall Visiting Professorship of Business and Development at the Said Business School of the University of Oxford, Sen said at a panel discussion on Friday that there was much that the developing countries could contribute at the ‘level of ideas’ to ongoing economic debates in the Western world.

The Nelson Mandela Lecture Hall in the Said Business School was packed to capacity, including leading economists from Oxford, London and students.

The panel led by Sen included Martin Wolf of the Financial Times, and Robert Wade , professor of Political Economy and Development at the London School of Economics .

Stating that he was worried about the management of failing economies such as Greece, Sen said the main lesson to be learnt from the developing countries is the crucial link between growth and how it generates public revenue.

“I am concerned with what is happening in Europe. There are a few things that they can learn from the developing world; for example, the importance of growth in generating public revenue. Going straight at budget deficit cuts growth,” he said, without mentioning the ongoing major public spending cuts in Britain to reduce budget deficit.

It was a reflection of the state of affairs, he said, that the dominant figures in public discourse in the west were not democratic figures but bankers.  Noting that Europe had done much to develop and further democratic norms in the last 300 years, Sen, however, said that at the current juncture in world history, the “mantle of democracy is now very much strongly held by India”.

He reiterated India’s commitment to democracy and to implement economic measures within a democratic framework.  Lauding the work of Patna-born Sanjaya Lall in the field of economic and business, Sen said his impact on economics was “truly fantastic”.

A prolific writer and research based at Oxford, Lall was considered one of the world’s foremost development economists.  

The visiting professorship, awarded to Professor Wade, has been made possible by generous gift from the Sanjaya Lall Memorial Fund, whose trustees include Ramnique Lall and Lord Meghnad Desai The visiting professorship is for the period of one Oxford term; the holder is expected to deliver a public lecture and encouraged to contribute to other scholarly activities. (PTI)

India could be world’s third largest economy by 2030: StanChart

Mumbai: India could be one of the largest economies in the world in the next two decades, according to an official from the Standard Chartered Bank.

“We are projecting that by 2030, China, India and Brazil would be the world’s first, third and fourth-largest economies,” Standard Chartered Bank’s Global Head (Client Access Transaction Banking) Neal Livingston said at an event here today.

“Asia accounts for a third of the world’s GDP and is responsible for more than two-third of the world GDP growth,” he said.

The bank expects a roll-over in the top five economies of the world and believes that their power could be under threat from the BRIC nations.

India’s GDP is expected to be $ 30-trillion by 2030. Increased capacity, better infrastructure, quality of education, health and hygiene are likely to boost India’s growth.  By 2030, China is likely to supersede the US and would reign as the super economy. China’s GDP volume is expected to reach $ 73.5-trillion, the highest in the world. In 2010, China’s GDP reached $ 5.9-trillion.

The country with the highest population in the world will remain the main engine of growth that is sustained by the manufacturing industry.  Moreover, the highly educated in China surged significantly.  During the past 30-years, China’s economy has changed from a centrally planned system that was largely closed to international trade to a more market-oriented one that has a rapidly-growing private sector. A major component supporting China’s rapid economic growth has been exports growth.

Brazil’s GDP volume is expected to be around $ 12.2- trillion by 2030.

India to become $ 30 trillion economy by 2030: Mukesh Ambani

Mumbai: India is poised to become a $30 trillion economy by the year 2030 from the current $1.4 trillion, industrialist Mukesh Ambani said today.

“India is envisaged to grow from a $1.4 trillion economy to over $9 trillion by 2020 and over $30 trillion by 2030 in nominal terms,” corporate giant Reliance Industries Chairman Mukesh Ambani said while addressing RIL’s shareholders at the company’s 37th AGM.

India’s continued march on a trajectory of high economic growth rate will translate into exponential growth in several sectors and RIL is well placed to participate in this growth story by aggressively “venturing into newer domains” he said.

“Reliance’s greatest opportunity is to contribute to and also to benefit from India’s galloping growth”, Ambani said adding that RIL is determined to significantly enhance its ranking among global businesses.

India’s economy is certain to become the third largest in the world in the foreseeable future.  Global economic scenario improved significantly in the year 2010 owing to accommodative monetary policies by most governments, which led to high liquidity in the system and stronger growth and higher demand.  “This milieu presents Reliance with several opportunities and challenges. Opportunities in market growth and for investments across each of its businesses,” Ambani said.