Indian Tycoons Lose Wealth But Cling to Luxuries
That’s the International Herald Tribune‘s take which ran this story on the decline of India’s substantial class of millionaires but their thirst for luxuries:
A falling stock market, a weak rupee and slowing economic growth have shaved about 60 percent off the wealth of the 40 richest people in the nation, Forbes said in its annual compilation earlier this month, with their net worth plunging to $139 billion from $351 billion a year ago. [ . . . ]
India had 123,000 millionaires in 2007 and showed the fastest pace of expansion, a Merrill Lynch/Capgemini report said. But a stock market rout has meant local investors have “notionally lost almost a year’s GDP,” Credit Suisse said in a recent report titled “Wealth destruction aftermath.” [ . . . ]
But while the notional value of their wealth has taken a hit, Indian billionaires still have plenty of loose change for luxury cars, art and wines. Sales of cars priced at more than 2 million rupees have remained strong, bucking the slump in overall Indian car sales. [ . . . ]
(More good news for Indian art after the jump.)
Neville Tuli, the chairman of Osian’s, a leading auction house, is confident that there will be bidders at a coming auction of Indian art and crafts even “in a worst-case scenario.” At auctions in New York recently, sales were less than half what they were a year ago and a majority of works were offered at prices far below their presale estimates.
“The Indian economy is stronger than the economies of Europe and the United States, so our art market’s stronger,” said Tuli, noting there were several new guests at the recent preview. “The art market’s really dependent on collectors who, irrespective of what is happening in the rest of the world, will still allocate resources to art. That’s their first priority.”
Indian tycoons feel the pinch from the downturn (International Herald Tribune)
