Millionaire Migration
In recent years, India has witnessed a significant trend of millionaires or high-net-worth individuals (HNIs) migrating to other countries. According to a report published by Henley & Partners ‘The Henley Private Wealth Migration Report 2024’ approximately 4,300 millionaires — those with a net worth of at least 1 million dollars (Rs. 8.36 crores) — are expected to renounce their Indian citizenship and relocate to other countries. Let’s delve into the factors driving Indian HNIs to move abroad and its potential impact.
What's Happening?
There has been much discussion about India’s rapid economic growth and its trajectory towards becoming a developed nation in the coming years. However, a report by Henley & Partners, a leading research firm that monitors global wealth migration, shows that India continues to be one of the top countries for HNI departures.
Around 4,300 millionaires are forecasted to leave India in 2024, a figure lower than the previous two years. In 2023, a record 5,100 millionaires left the country. India ranks third, after China and the UK, in terms of the number of ultra-rich individuals emigrating to other countries.
Factors Behind the Migration
According to the report, Indian millionaires frequently leave the subcontinent in pursuit of a better lifestyle, safer and cleaner environments, and superior health and education services. Meanwhile, regional threats and uncertainty surrounding America's security stance in the event of a Trump victory in the November 2024 presidential election are contributing to the continued net outflow of high-net-worth individuals from South Korea and Taiwan.
What’s Next?
As mentioned in the report, Prof. Trevor Williams, former Chief Economist at Lloyds Bank Commercial, says, “Wealth growth is unevenly distributed, with developing and emerging economies forecast to grow at over 4% over the next 5 years — more than twice the rate of the advanced economies. That has enormous implications for the future growth and distribution of millionaires and billionaires worldwide. Many countries from the so-called developing world are seeing a significant increase in their ultra-high-net-worth individual populations".
Teji Mandi (TM Investment Technologies Pvt Ltd) is a SEBI registered Research Analyst (RA). Information in this article should not be construed as investment advice. Please visit www.tejimandi.com to know more.