Around 4,300 Indian millionaires are expected to migrate out of India in 2024, positioning the country with the third-highest net outflow of millionaires globally, according to a report by investment migration consultancy Henley & Partners. This follows China and the United Kingdom, with projected losses of 15,200 and 9,500 millionaires, respectively.
Trends in Global Millionaire Migration
The global landscape is witnessing an unprecedented shift, with approximately 128,000 millionaires anticipated to relocate in 2024. This marks a significant rise from the previous record of 120,000 in 2023, reflecting a growing trend of high-net-worth individuals (HNWIs) seeking new destinations for better opportunities and living conditions.
Why the UAE Tops the List
The United Arab Emirates (UAE) is the most preferred destination for Indian millionaires, with a projected net inflow of 6,700 millionaires in 2024. The UAE has strategically positioned itself as a prime destination by offering attractive golden visas, luxurious living conditions, and a business-friendly environment. Despite the introduction of a 9% corporate income tax in 2023, the UAE continues to attract significant inward investment due to its stable political framework, advanced infrastructure, and diverse investment opportunities.
Key Drivers Behind the Migration
Political and Economic Stability: The UAE's stable political environment and robust economy are major draws for millionaires seeking a secure and prosperous future.
Business-Friendly Policies: The ease of doing business and a plethora of investment opportunities make the UAE a favorable destination for entrepreneurial and investment activities.
Quality of Life: Luxurious living conditions, advanced infrastructure, and a commitment to environmental, social, and governance (ESG) initiatives enhance the UAE's appeal.
Global Diversification: Indian private banks and wealth management platforms, such as Nuvama Private and LGT Wealth Management, are expanding their presence in the UAE to support clients with global diversification and expansion requirements.
Other Popular Destinations
Besides the UAE, other top destinations for migrating millionaires include the United States, Singapore, Canada, and Australia. These countries offer attractive incentives and opportunities that appeal to HNWIs looking to optimize their wealth and lifestyle.
The Indian Context
While the outflow of millionaires from India might raise concerns, it is not necessarily alarming. India continues to generate more new HNWIs than it loses to emigration. Additionally, many of the millionaires who leave India maintain business interests and second homes in the country, thereby continuing to contribute positively to the Indian economy.
Global Perspectives
- China: The net outflow of 15,200 millionaires in 2024 is driven by slowing economic growth, geopolitical tensions, and attractive opportunities abroad.
- United Kingdom: A net loss of 9,500 millionaires is influenced by the fallout from Brexit, political uncertainty, and changes to the non-domicile tax regime.
Conclusion
The migration of millionaires is a complex phenomenon influenced by various factors, including economic opportunities, political stability, and quality of life. While India ranks third in terms of millionaire outflow, the country remains a robust generator of wealth, with many HNWIs maintaining ties to their homeland. The UAE, with its attractive policies and living conditions, stands out as the top choice for relocating Indian millionaires, reflecting broader global migration trends among the wealthy.
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