India’s Rich no longer look so Rich

Mukesh Ambani India's Richest Man

Mukesh Ambani India's Richest Man

Over the years we have heard many people complain about how the Rich in India keeps getting Richer and the poor keep becoming poorer. Astonishingly in 2011 the tide has turned and if reports are to be belived “India’s richest are getting poorer.

According to Forbes India Rich list, the wealth of India’s ‘who’s who’ has gone down from $300 billion in 2010 to $241 billion this year. Also, the country now has fewer billionaires –57 in all – compared to 69 last year.

Though Mukesh Ambani, chairman and managing director, Reliance Industries, maintained his numero Uno position as India’s richest man for the fourth time in a row, his net worth has gone down from $27 billion in 2010 to $22.6 billion this year. Steel king Laxmi Mittal also maintained his second spot.

Interestingly, during this period the business tycoon Mukesh Ambani, completed the construction of his 27-storey Antilia. It may be recalled that shares of Reliance Industries Limited have taken a beating in the stock market despite the company posting healthy quarterly results.

“Indian share market is driven by sentiments. The company’s tiff with the government and its attempt to venture in new areas has affected its ability to raise market capital,” said an expert on condition of anonymity.

With uncertainty in the environment and interest rates going up, India Inc is finding it difficult to raise capital,” said Sangeeta Lala, vice president, Teamlease, adding that “India as an economy is getting more and more transparent and open.”

“The rich have to declare every penny they earn. So, now the rich no longer look so rich,” she said. India has raised its interest rates 13 times in 19 months, making it more expensive for businesses to raise capital.

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