According to a report by investment migration consultancy Henley & Partners, approximately 4,300 Indian millionaires are projected to migrate out of India in 2024. This forecast positions India as having the third-highest net outflow of millionaires globally, following China and the United Kingdom, with anticipated losses of 15,200 and 9,500 millionaires, respectively.
However, the expected outflow of Indian millionaires in 2024 is lower compared to the 5,100 high-net-worth individuals (HNWIs) who left the country in 2023. On a global scale, around 128,000 millionaires are projected to relocate in 2024, surpassing the previous record of 120,000 set in 2023. Millionaires and HNWIs, defined as individuals with liquid investable wealth of at least $1 million (or Rs 8.3 crore), are increasingly seeking new destinations, with the United Arab Emirates (UAE) and the United States topping the list of preferred countries.
Dominic Volek, Group Head of Private Clients at Henley & Partners, emphasized the unprecedented scale of this movement, stating, "An unprecedented 128,000 millionaires are expected to relocate in 2024, eclipsing the previous record of 120,000 set in 2023." The UAE is poised to welcome a record net inflow of 6,700 millionaires in 2024. The nation has positioned itself as a top destination for wealthy individuals by offering attractive golden visas, luxurious living conditions, and a business-friendly environment in a strategic location. Despite the introduction of a 9% corporate income tax in 2023, the UAE remains a competitive economy, attracting significant inward investment.
Sunita Singh-Dalal, a partner at Hourani in the UAE, attributes this appeal to the country's stable political framework, advanced infrastructure, ease of doing business, diverse investment opportunities, and commitment to ESG initiatives. Indian private banks and wealth management platforms are also expanding their presence in the UAE to cater to their clients' needs. Notable examples include Nuvama Private and LGT Wealth Management, which support Indian clients with global diversification and expansion requirements. Similarly, Kotak Mahindra Bank and 360 ONE Wealth provide wealth management services to Indian families in the UAE.
In addition to the UAE and the United States, other top destinations for migrating millionaires include Singapore, Canada, and Australia. While the outflow of millionaires from India might seem concerning, the report suggests it is not alarming. India continues to produce more new HNWIs than it loses to emigration. Moreover, many of the millionaires who leave India retain business interests and second homes in the country, which positively impacts the Indian economy.
In contrast, some nations are grappling with a significant exodus of wealth. China is forecast to see a net outflow of 15,200 millionaires in 2024, driven by slowing economic growth, geopolitical tensions, and attractive overseas opportunities. The UK faces a net loss of 9,500 millionaires, influenced by Brexit fallout, political uncertainty, and changes to the non-domicile tax regime.
