New Delhi: India is expected to witness the exit of 6,500 high-net-worth individuals (HNWIs) in 2023, the second-highest estimated outflow number on a global level, cited the latest Henley Private Wealth Migration Report 2023. Net exit numbers from India are anticipated to drop to 6,500 from 7,500 a year back, the report said.
New outflows of HNWIs
While number for India’s net outflow in HNWIs stands at 6,500, whereas the numbers for a net outflow of HNWIs for other countries are at; for China, it is at 13,500, 3,200 for the UK and 3,000 for Russia. Figures have doubled for UK’s anticipated HNWI exit than that of last year when it saw a net exodus of 1,600 millionaires.
“These outflows are not particularly concerning as India produces far more new millionaires than it loses to migration,” Andrew Amoils, Head of Research at New World Wealth stated, as per the report’s statement.
Reason for the leaving
Sunita Singh-Dalal, Partner, Private Wealth & Family Offices at Hourani states in a report that “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.”
“The top five destinations for net inflows of high-net-worth individuals in 2023 are projected to be Australia, the UAE, Singapore, the USA, and Switzerland. On the flip side, the largest net outflows of millionaires are expected to come from China, India, the UK, Russia, and Brazil,” told Andrew Amoils, the Head of Research at New World Wealth, the organisation that provides the data for this report.
By the end of the year 2022, India stood amongst the 10 richest countries in the world- at 10th place with 2,44,600 HNWIS, 1,078 centi-millionaires (those with wealth above $100 million) and 123 billionaires (Individuals having wealth exceeding $1 billion or Rs 8,200 crore).
In comparison to India, China has 7,80,000 HNWIs and 285 billionaires, whereas, the US has 52,70,000 HNWIs and 770 billionaires.
Juerg Steffen, CEO of Henley & Partners explains the question as to why the world’s wealthiest migrate from one country to another country- “Affluent families are extremely mobile, and their transnational movements can provide an early warning signal in terms of a country’s economic outlook and future country trends. Like the proverbial canary in the coal mine, they alert us to dangers that may lie ahead as they are more sensitive to potential threats to their wealth and usually have the resources to take a corrective course of action to preserve their legacies. An increasing outflow of millionaires often points to a drop in confidence in a country, since high- and ultra-high-net-worth individuals have the means to leave and are usually the first to exit and vote with their feet when circumstances deteriorate.”
Things attracting HNWIs!
“Political stability, low taxation, and personal freedom have always been key metrics for millionaires when it comes to deciding where to live. However, the priorities of affluent individuals are shifting to the intangible but equally vital elements that impact; their children’s prospects, the quality of their lives, and the legacies they leave.” states Juerg Steffen.
