The Global Wealth Divide: Where Does India Stand?
In this article, we will explore the data presented by Visual Capitalist that showcases the global wealth per person on both average and median basis. Let’s dive in!
The concept of average and median is essential to understand the wealth distribution patterns. The average represents the total wealth divided by the population, while the median is the middle point that divides the population into two halves.
According to the data, rich countries like Switzerland and Norway have an average wealth of $167,000 per person. However, when we consider the median, the gap becomes evident, with the figure dropping down to $85,680. This highlights the significant difference between the rich and the poor within these countries.
When we shift our focus to Australia and Belgium, we observe a smaller wealth gap between the average and the median. This suggests a more evenly distributed wealth within these countries.
Where does India stand ?
Now, let’s address the pressing question – Where does India stand in terms of global wealth per person? Unfortunately, India finds itself at the bottom of the table with an average wealth of $3800 per person (approximately Rs. 3 lakhs) and a median wealth of $16,000 (around Rs. 13 lakhs). This means that half of the Indian population falls below the Rs. 13 lakhs mark, while the other half falls above it.
It is crucial to note that the global wealth per person has the potential to increase significantly in the future. Several countries, including Turkey and South Africa, have similar median wealth figures to India. However, their infrastructure and systems are often more advanced compared to India. This indicates that India has a long way to go to catch up and bridge the wealth gap.
Looking ahead, the next 20 years present India with an unlimited growth potential. Even progressing from the last row of the table to the third or fourth last row would be a significant achievement. The key to realising this potential lies in our governance, political system, and democratic values remaining intact. We need leaders who prioritise upward mobility and progress rather than maintaining the status quo.
Encouragingly, India’s brand and influence have been rising in recent years. We are engaging in more business with the rest of the world, and significant infrastructure projects are underway, connecting people through road and telecom networks. These developments instil optimism that India will climb up the wealth per person table and achieve better outcomes in the future.
Considering the economic perspective, it is essential for investors to remain positive about the Indian market’s growth prospects. As long as we avoid major mistakes, the markets are projected to grow over the next 20 years. So, it’s crucial not to fear the market, as it is structured to generate gains almost automatically. However, exercising caution to avoid significant blunders is vital for individual investors.
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