Over 6,500 millionaires could leave India in 2023
At least 6,500 millionaires or high-net-worth individuals (HNWIs) are set to leave India in 2023, per the Henley Private Wealth Migration Report. The country is expected to have the second-highest outflow of millionaires in 2023. Millionaires or HNWIs are categorized as people with an investible wealth of $1 million or more. Let's see why wealthy Indians are leaving the country.
India's outflow of HNWIs to decline from 7,500 in 2022
India's net outflow of HNWIs places it behind China, which is likely to lose 13,500 HNWIs this year. However, the report shows a slight improvement in India's net flow compared to last year's figure. In 2022, 7,500 millionaires migrated out of India. China and India are followed by the UK and Russia, with a net outflow of 3,200 and 3,000 HNWIs, respectively.
Prohibitive tax legislation and complex outbound remittance rules cause migration
According to the report, India's richest leave the country mainly due to prohibitive tax legislation and complex rules related to outbound remittances, which are open to abuse and misinterpretation. Most of the migrating HNWIs look for countries that offer formal residence through investment programs. The preferred locations for wealthy Indians are Dubai and Singapore, with the former being the first choice.
Losing millionaires is not cause for concern
The pertinent question is should India be worried about the outflow of HNWIs. According to the report, the migration of millionaires should not be a cause of major worry. According to New World Wealth, a global wealth intelligence firm, India's HNWIs are set to increase by 80% by 2030. There is also a trend of affluent Indians returning to the country.
Australia will be the most favored destination in 2023
Globally, Australia is expected to become the country with the highest net inflow of HNWIs in 2023. It will replace UAE as the most favored destination for migrating millionaires. In 2023, Australia is set to see an influx of 5,200 HNWIs, while UAE could receive 4,500 millionaires. Singapore, the USA, and Switzerland round out the top 5.
China could lose more HNWIs than last year
Unlike India, its neighbor China is set to see more HNWIs leaving in 2023 than in 2022. Per the report, this could be damaging to China as the country has been experiencing slow growth in wealth over the past few years. The report suggests that the US is also losing appeal among migrating millionaires. However, the country still attracts more people than it loses.
