Recently, a report by Henley and Partners, an international investment migration advisory firm, revealed that 4,300 millionaires are estimated to leave India in 2024. This makes India among the top three countries after China and the UK, which have witnessed a significant outflow of millionaires.
Moreover, 2024 is an important year for global wealth migration, as about 1,28,000 millionaires are expected to relocate. This notable shift will impact the countries they leave and move to.
Let’s find out why Indian millionaires relocate to other countries, their preferred destinations, and whether their migration will impact India’s economy.
What are the Preferred Destinations for Indian Millionaires?
For many Indian millionaires, the UAE and the US are the preferred destinations for relocation.
UAE attracts millionaires from India and around the world due to its attractive golden visa that draws foreign investors, entrepreneurs, and skilled professionals for long-term residency. UAE may witness a net inflow of 6,700 millionaires in 2024.
Moreover, with the introduction of a 9% UAE corporate income tax in 2023, it has become a secure haven for wealthy individuals, offering an advantageous tax policy, strategic location, and top-tier infrastructure.
Other top destinations for Indian millionaires are the United States, Singapore, Canada, and Australia. A shift in migratory trends can also appear as France actively welcomes Indian students and is expected to host 30,000 students by 2030. Moreover, Germany, known for its affordability and excellent education system, has seen a 107% increase in Indian students in the past four years.
Wealth Exodus or Inrush?
The significant departure of about 4,300 millionaires from India raises questions about India's economic landscape.
It's crucial to note that India has witnessed an 82% increase in millionaires from 2013 to 2023. This means that India produces far more millionaires than it loses to immigration. Furthermore, India ranks among the top three countries globally in terms of billionaire population, indicating a robust economic environment in the country.
Also, many departing Indian millionaires maintain significant business interests and second homes in the country itself. Many high-net-worth individuals continue to contribute to the Indian economy through their retained assets and investments, which shows that they persist in their economic ties with India despite their physical location in other countries.
What is the Motivation Behind Migration?
- Many individuals and families migrate from India to seek safety and security. Secondly, financial concerns play an important role, and taxation policy and retirement planning majorly influence migration decisions.
- Enhancing work and business opportunities can be another reason for high-net-worth individuals to seek jurisdictions that offer a conducive business climate, innovative ecosystem, and ample opportunities for growth and networking.
- Lifestyle preferences also draw millionaires from India, who seek clean air due to urban congestion and pollution in some Indian cities.
- Education cannot be overlooked for these reasons, as it appears to be a critical factor for many families who want access to top-tier schooling in prestigious educational institutions.
In Conclusion
Indian millionaires, in pursuit of an improved lifestyle, safer environment, and access to superior education and health care services, relocate to countries like the US, Australia, and Canada.
However, the UAE emerged as a preferred destination for most high-net-worth individuals (HNWI) as it provides a business-friendly environment and is considered a tax-efficient country that benefits Indian millionaires in many ways.
Rupali enjoys writing about everything related to money (in India and around the world). A MICA graduate in Communications, she has over seven years of experience in content creation and communication strategy for various user touchpoints, from CRM to UX for apps and websites, especially in fintech and healthcare. Outside of work, you'll find her binging on true crime documentaries or cooking up a storm.
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