5,100 Indian millionaires relocated abroad in 2023 (image:pixabay.com/)
According to a recent report by International Investment Migration Advisory Firm Henley & Partners, a ballpark of 4,300 Indian millionaires are expected to leave the country this year, with a significant number choosing the UAE as their destination to live for eons or the rest of their lives.
The report noted that about 5,100 Indian millionaires relocated abroad in 2023. India, the fastest-growing economy in the world, is anticipated to rank third globally in terms of millionaire migrations, following China and the UK. While India has now overtaken China as the world’s most populous nation, its net millionaire exodus is less than China’s 30% per cent.
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“While India loses thousands of millionaires each year, with many migrating to the UAE, concerns over the outflows may well be mitigated as with wealth growth of 85% over the past decade. The country continues to produce far newer high-net-worth individuals than it loses to emigration,” the report said.
As per the reports, many of the departing millionaires retain business interests and second homes in India, which suggests ongoing economic ties. Indian private banks and wealth management platforms are vigorously expanding into the UAE to offer seamless investment advisory services to their clients.
Recent examples include Nuvama Private and LGT Wealth Management, both known for supporting Indian clients with global diversification and expansion needs and other banks are also bolstering their presence in the UAE, ensuring competitive wealth management services for Indian families.
“Kotak Mahindra Bank and 360 ONE Wealth are joining the dots to provide Indian families with wealth management services on the ground in the UAE, ensuring that they don’t lose out to their competitors,” the Henley report said. Around 1,28,000 millionaires worldwide are expected to relocate in 2024, with the UAE and the USA topping the list of preferred destination according to the reports.
A Millionaire is defined as an individual with liquid investable assets totalling $1 million or more. High-net-worth families opt to relocate for various reasons, including safety, financial considerations, tax benefits, retirement prospects, business opportunities, favourable lifestyles, educational opportunities for children, healthcare systems, and overall quality of life.
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Millionaires who are migrating contribute markedly to foreign exchange reserves by moving substantial assets with them. Their investments also stimulate local stock markets through equity placements. Moreover, businesses established by millionaires often create numerous high-paying jobs, benefiting the middle class. Examples like Microsoft, Apple, and Tesla have demonstrated this effect in the USA already.
With the UAE and the USA topping the list of preferred location, approximately 1,28,000 millionaires are expected to migrate in 2024 worldwide.
