Millionaire Migration: What’s Pushing India’s Rich to Move?

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.

The UAE is the biggest beneficiary of this migration, with a significant number of Indian HNIs choosing it as their new home.

Global Wealth Migration Trends

The trend of ultra-rich individuals migrating to other countries in search of a better quality of life, security, and wealth preservation is on the rise. In 2024, a record 1,28,000 ‘richie rich’ individuals worldwide are expected to migrate, an increase from the 1,20,000 who did so in 2023. The UAE is the top destination for HNIs, largely due to the influx of Indian millionaires. Other major destinations include the USA, Singapore, and Australia.

“As the world grapples with a perfect storm of geopolitical tensions, economic uncertainty, and, social upheaval, millionaires are voting with their feet in record numbers. In many respects, this great millionaire migration is a leading indicator signaling a profound shift in the global landscape and the tectonic plates of wealth and power, with far-reaching implications for the future trajectory of the nations they leave behind or those which they make their new home,” Dominic Volek, Group Head of Private Clients at Henley & Partners, said.

Factors Behind Migration of Millionaires

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”.

To conclude, millionaire migration figures serve as a significant indicator of an economy’s health, particularly in terms of outflow. For example, if a country is experiencing a substantial exodus of millionaires, it likely faces serious underlying issues. This trend can also portend a negative future, as wealthy individuals are typically the first to depart.

That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!

This article is for informational purposes only. This is not investment advice. Disclaimer: Teji Mandi Disclaimer