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The world is home to 1.2 crore (12 million) millionaires with collective net worth reaching a record high of $46.2 trillions, with India clocking the second highest growth of 22.2 per cent in its HNI population last year after Hong Kong, a report said on Wednesday.
According to the World Wealth Report 2013, released by Capgemini and RBC Wealth Management, the investable wealth of the world's High Net Worth Individuals rebounded in 2012, growing by 10 per cent to reach a record high of $46.2 trillion, after declining 1.7 per cent in 2011.
As many as one million individuals joined the global HNWI population, which reached 12 million, reflecting an increase of 9.2 per cent.
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While infrastructure costs are more or less given, much can be done to improve lives at relatively low cost.
The policy choice is starkly brought out by those who say the food security law is an unnecessary costly misadventure.
Instead, it will be more beneficial to invest in sanitation and safe drinking water -- both deliverable at lower costs.
There is even a way of getting more without spending more -- by ensuring that the rural jobs programme creates enough water management assets such as excavated ponds and small check dams.
This can raise agricultural productivity, incomes and living standards in rain-fed areas.
So, policy focus should shift to targeting modestly good growth and using its fruits to improve lives.
The growth in number of HNWIs in India was attributed to positive trends in equity market capitalisation, gross national income, consumption and real estate.
In Asia-Pacific, equity markets responded well to aggressive monetary policy moves.
In India, reform measures and monetary easing helped equity markets gain by 23.9 per cent, while strong exports in South Korea partly contributed to a 20.2 per cent gain there.
Going forward the future outlook looks cautiously upbeat, led by Asia-Pacific.
According to the report, global HNWI wealth is forecast to grow by 6.5 per cent annually over the next three years with the Asia-Pacific region projected to grow at one and a half times the global average at 9.8 per cent and is expected to lead global growth.
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"Despite a marked focus on capital preservation and high cash allocations, high net worth individuals achieved a record level of wealth in 2012, suggesting further growth lies ahead if trust and confidence in the markets increase further," said M George Lewis, Group Head, RBC Wealth Management & RBC Insurance.
Meanwhile, according to the report, art market continued its recovery with strong growth in emerging markets especially China, Brazil and UAE.
But the same cannot be said about India as it is still at an earlier, more nascent stage in terms of art buying, with HNWIs not yet allocating much of their portfolio into art compared to other emerging markets, the report said.