The stock market in India is set to plunge by more than 10 per cent by the end of August, the latest sign that the rupee is set for another significant depreciation.
The index of stocks, the main gauge of investor sentiment in India, will lose nearly a third of its value over the next year as the rupees weaken and the government is struggling to prop up the economy.
On Friday, the rupe fell more than 50 per cent against the dollar in a week, the biggest drop in the past two weeks.
The drop will not only dent India’s exports and consumer spending but also hit growth and inflation, said S.R. Rao, an economist at ETN Financial Services, which tracks the stock market.
India’s growth is expected to slow to around 6.7 per cent this year from 7.3 per cent in 2017.
India has already experienced a series of financial and economic crises in recent years, with the government blaming the economy for the current slowdown.
On Wednesday, Prime Minister Narendra Modi announced that his government would take the country out of a series on the economic health of the world, and focus on infrastructure projects.
India is set a target to create nearly 7.5 million jobs by 2022 and to double its gross domestic product by 2026.
Rich people and other people who own property in India have a wealth of over Rs 20,000 crore.
According to a new report, the real net worth of the population is Rs 22,600 crore.
The report from WealthSimple, a data analytics and financial data service provider, comes a month after the government announced a new ‘Evo-Sachin’ initiative to provide affordable affordable education for the poor.
In a report titled ‘Real Wealth of India’, WealthSimple estimates that the average Indian family has an estimated net worth that stands at Rs 22.6 lakh crore.
The report also states that the country’s population has a net worth ranging from $2.5 lakh crore to over Rs 30 lakh crore, depending on the age bracket and the household size.
The ‘Eve-Sampin’ scheme is the latest in a series of initiatives that the government has launched to make the country a “smart country”.
According to the Economic Survey 2015-16, the median wealth of the country is around Rs 26 lakh crore and the wealth of those in the top 20 per cent of the income distribution is estimated to be $13,000.
The average wealth of Indian households is estimated at Rs 16.7 lakh crore as on January 10, 2017, the report said.
The richest households in the country have a net wealth of around $5.6 trillion.
Among the richest families, the richest 5 per cent has a wealth worth Rs 7.3 trillion, according to the report.