India’s super-rich growing wealthier

[Neo]

India’s super-rich growing wealthier

Saturday, March 20, 2010

NEW DELHI: The number of super rich people in India have doubled last year owing to its robust economy.

The nation that is also home to millions living below poverty line has nearly 50 billionaires with a combined net worth of over $225 billion.

This figure is up from 24 billionaires in the previous year, says Forbes magazineís latest compilation of the worldís super rich.

The number of billionaires multiplied last year after a fall off in 2008, and now the country is home to the most number of billionaires in the world after the United States, China, Russia and Germany.

One key reason for the super-rich getting richer is Indiaís ability to combat the global financial downturn, analysts suggest.

When the world was fighting to contain the economic crisis last year, and still is, India was well on a recovery path posting an annual growth rate of over 7.5 per cent.

The recovery of capital markets, which doubled in value in the last year after being badly bruised by the economic crisis, has also helped swell the wealth of these individuals.

It is said that much of Indiaís wealth was created during a five year period when the economy grew by nearly nine per cent until the global financial crisis in 2008 wrecked havoc on the global finance.

Indian stocks have risen, driving the benchmark index to an eight-week high, as investors bet earnings growth will be sustained even as inflation accelerates.

Reliance Industries Ltd, Indiaís most valuable company, owned by the worldís fourth richest man, and also Asiaís richest billionaire Mukesh Ambani, has climbed on speculation that its profitability will further improve.

According to the median forecast, the BSE Sensex is set to grow by about 11 per cent by the end of this year.

Analysts suggest that this is largely due to the positive sentiments about earnings and supported by healthy economic growth.

Many billionaires, who have made their fortunes in emerging industries, comes from information technology and retail sectors, while some of them are also from steel, automobiles, real estate and pharmaceutical sectors.

The greatest challenge being faced by the Indian government is to ensure that the benefits of a rapidly growing economy trickle down to the poorer sections of the society.

World Bank statistics state that nearly one-third of the worldís poor live in India, and with nearly half the countryís over one billion people live on less than $1.25 a day.

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