Millionaire Exodus: More than 6000 high net-worth individuals slated to leave India in 2023 | Mint
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Business News/ News / India/  Millionaire Exodus: More than 6000 high net-worth individuals slated to leave India in 2023

Millionaire Exodus: More than 6000 high net-worth individuals slated to leave India in 2023

Around 6,500 high-net-worth individuals (HNIs) are expected to leave India in 2023, according to the Henley Private Wealth Migration Report. The report shows that the country follows China, which is expected to lose 13,500 HNIs this year.

More than 6000 high net-worth individuals projected to leave India in 2023 (Stock Image)Premium
More than 6000 high net-worth individuals projected to leave India in 2023 (Stock Image)

An estimated 6,500 high-net-worth individuals (HNIs) will likely move out of India in 2023, according to a report by the Henley Private Wealth Migration Report 2023 which tracks wealth and investment migration trends worldwide.

India follows China which will likely lose 13,500 HNIs this year. The projection indicates that the anticipated outflow of HNIs is slightly lower than the previous year’s exit of 7,500 millionaires.

It said that given India’s capacity to generate new millionaires, the outflow is not particularly concerning. According to the report, the high net-worth individual population is projected to experience a remarkable 80% increase by 2031, positioning India as one of the world’s fastest-growing wealth markets during this period. This growth will be primarily fuelled by thriving financial services, healthcare, and technology sectors within the country.

It has also observed a trend of affluent individuals returning to India, and as the standard of living continues to improve, it anticipates a significant influx of wealthy individuals moving back to India in greater numbers.

The report cited New World Wealth, a firm tracking global wealth migration trends for over a decade, as saying that the UK will have 3,200 millionaires, and Russia will have 3,000 ­HNIs.

Dominic Volek, group head of private clients for the company, said the recent and persistent turmoil has caused a shift where more investors are considering relocating their families for a range of reasons, from safety and security, to education and healthcare, to climate change resilience and even crypto-friendliness.

“Nine of the top 10 countries for forecast net HNI inflows in 2023 host formal residence by investment programs that encourage foreign direct investment in return for the right to reside, which can also lead to citizenship in some cases. Investors see the clear value of diversifying their domicile portfolios as the ultimate hedge against both regional and global volatility, now and in the future," said Volek.

Sunita Singh-Dalal, partner, private wealth and family offices at Hourani, said, “Prohibitive tax legislation coupled with convoluted, complex rules relating to outbound remittances that are open to misinterpretation and abuse, are but a few issues that have triggered the trend of investment migration from India. Dubai and Singapore remain preferred destinations for wealthy Indian families. The former, also known as the “5th City of India," is particularly attractive for its government-administered global investor “Golden Visa" programme, favorable tax environment, robust business ecosystem and safe, peaceful environment."

Rohit Bhardwaj, director, private clients the company’s India office, said, “With a current count of approximately 3.5 lakh high-net-worth individuals (HNIs) residing in the country, India showcases a robust wealth presence. Asia is home to various wealth hubs and just this year, the number of enquiries received from South Asia in the first four months of 2023 already accounted for 72.2% of the total number of enquiries recorded the previous year which in itself was a record year. We project this upward trajectory to continue this year, with Indian investors voicing the demand for alternative residences and additional citizenships."

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Varuni Khosla
Varuni Khosla is a journalist with close to 14 years of experience in writing business news stories for mainstream newspaper companies like Mint and The Economic Times. She reports and writes on luxury and lifestyle brands, hospitality and tourism news, the business of sports, the business of advertising and marketing and alcohol brands.
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Published: 13 Jun 2023, 04:20 PM IST
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