India set to lose 4,300 millionaires this year. Where are they headed & why?

A whopping 4,300 millionaires are expected to leave India by this year, revealed a report by international investment migration advisory firm Henley & Partners.

As per the Henley Private Wealth Migration Report 2024, India has remained one of the top nations for high-net-worth individuals (HNWI) departures across the world. In 2023, 5,1000 millionaires left the country.

But, why are these millionaires leaving India?

The report said that there can be multiple factors for which millionaires relocate. This could include safety, financial considerations, tax benefits, retirement prospects, business opportunities, favorable lifestyles, educational opportunities for children, healthcare systems, and overall quality of life.

According to Dr. Hannah White OBE, Director and CEO of the Institute for Government in London, economic and political stability are in retaining HNWIs.

Where do these millionaires migrate to from India?

More from India

'First Assam visit after Op Sindoor': PM Modi inaugurates projects worth Rs 18,530 cr India to host fifth Coast Guard Global Summit in Chennai in 2027

The top most preferred destination for Indian millionaires is the United Arab Emirates (UAE).
“India continues to lose large numbers of millionaires, especially to the UAE,” the report said.
It further said that in 2024, the UAE is expected to attract a record net inflow of 6,700 wealthy migrants.

Why so?

Millionaires are likely to get lured by the UAE’s 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,” a report by Economic Times quoted Sunita Singh-Dalal, Partner at Hourani in Dubai, as saying.

Impact Shorts

More Shorts

'New dawn': PM Modi meets Manipur violence victims in first visit since 2023 unrest

CP Radhakrishnan takes oath as Vice President of India

Is it a worrying situation?

The migration of millionaires tends to leave a significant impact on a country which they leave.

The ET report quoted Andrew Amoils, Head of Research at New World Wealth, as saying that the migrating millionaires are a “vital” source of forex revenue, it is so because they tend to bring their money with them when they move to a country.

“Around 20 per cent of them are entrepreneurs and company founders who may start new businesses and therefore, create local jobs in their new country. This percentage rises to over 60 per cent for centi-millionaires and billionaires,” Amoils added.

However, the report by Henley & Partners said that though India loses thousands of millionaires each year, concerns over the outflows may well be mitigated as with wealth growth of 85 per cent over the past decade, the country continues to produce far more new HNWIs than it loses to emigration.

Which other countries may see millionaires moving out?

Other significant outflows are expected from China, the UK, South Korea, Brazil, South Africa, Taiwan, Vietnam, and Nigeria. Each country faces unique challenges that influence their millionaire migration patterns.

Global migration

In 2024, an unprecedented 128,000 of the world’s millionaires are projected to migrate to a new country, with the UAE and the USA topping the list of destinations. This is more than the previous record of 120,000 set in 2023.

“This great millionaire migration signals a profound shift in the global landscape, with far-reaching implications for both the countries they leave and those they move to,” Dominic Volek, Group Head of Private Clients at Henley & Partners, said.

Other top destinations for migrating millionaires include the United States, Singapore, Canada, and Australia. These nations are expected to witness a remarkable increase in net inflows of wealthy individuals, benefiting from the economic contributions and job creation that HNWIs often bring, the Henley & Partners report said.