A report by Henley & Partners reveals that 4,300 millionaires are expected to leave India this year. The Henley Private Wealth Migration Report 2024 ranks India among the top nations for high-net-worth individuals (HNWIs) departures.
In 2023, 5,100 millionaires left the country.
Reasons for Departure
The report identifies several factors driving millionaires to relocate, including safety, financial considerations, tax benefits, retirement prospects, business opportunities, favorable lifestyles, educational opportunities for children, healthcare systems, and overall quality of life. Dr. Hannah White OBE, Director and CEO of the Institute for Government in London, emphasized the importance of economic and political stability in retaining HNWIs.
Preferred Destinations
The United Arab Emirates (UAE) is the most popular destination for Indian millionaires. The report projects the UAE will attract a net inflow of 6,700 wealthy migrants in 2024, drawn by its zero income tax policy, luxurious lifestyle, strategic location, and gold visa programs.“The evolution and development of the UAE’s wealth management ecosystem is unprecedented. In less than five years, the UAE has introduced a robust regulatory framework that provides the wealthy with a range of innovative solutions to protect, preserve, and enhance their wealth,” Sunita Singh-Dalal, Partner at Hourani in Dubai, told Economic Times.
Impact on India
The migration of millionaires significantly impacts the countries they leave. According to Andrew Amoils, Head of Research at New World Wealth, migrating millionaires are a vital source of foreign exchange revenue as they bring their wealth with them. About 20% are entrepreneurs and company founders who may start new businesses and create local jobs in their new country, a figure that rises to over 60% for centi-millionaires and billionaires.However, Henley & Partners note that while India loses thousands of millionaires annually, the country’s wealth growth of 85% over the past decade means it continues to produce far more new HNWIs than it loses to emigration.
Global Trends
Other countries experiencing significant outflows of millionaires include China, the UK, South Korea, Brazil, South Africa, Taiwan, Vietnam, and Nigeria. Each faces unique challenges influencing their migration patterns.In 2024, an unprecedented 128,000 millionaires worldwide are projected to migrate, with the UAE and the USA being top destinations. This figure surpasses the previous record of 120,000 set in 2023. Dominic Volek, Group Head of Private Clients at Henley & Partners, remarked that this “great millionaire migration” signals a profound shift in the global landscape, affecting both the countries they leave and those they move to.Other top destinations for migrating millionaires include the United States, Singapore, Canada, and Australia, which are expected to see significant increases in net inflows of wealthy individuals, benefiting from their economic contributions and job creation.
