Credit Suisse has released a report titled Credit Suisse Global Wealth Report 2021 in which it reveals that Indian population has witnessed a decline of 6.1% dip in its wealth in 2020.
However, in rupee terms, the decline was 3.7%. Cumulatively, the pandemic has eroded USD 594 billion of the total household wealth in India, finds the report.
Household wealth has played a vital role in defining the resilience of nations and individuals during the pandemic. The 6.1% decline is largely due to the decrease in the value of non-financial assets like real estate. The reported numbers show that financial assets per adult increased 2% while non-financial assets dipped 8.4%, which resulted in a 6.2% decline in gross assets.
The report further says that the household debt of Indians fell by 7.4% in 2020 largely due to reduced interest rates.
Talking about wealth distribution, the report made a mention of Gini coefficient. This coefficient describes equality/inequality in distribution among the population. A higher number depicts higher inequality. The coefficient stood at 74.7 in 2000, which gradually increased to 82.0 in 2019 and further to 82.3 in 2020.
