New Delhi- India is expected to see an estimated 6,500 high-net-worth individuals (HNWIs) – or millionaires and billionaires – moving out of the country in 2023, a new report said.
The projection, however, indicates that the anticipated outflow of HNWIs is slightly lower than last year’s exit of 7,500 millionaires.
India follows China, which will likely lose 13,500 HNWIs this year, according to the Henley Private Wealth Migration Report 2023 which tracks wealth and investment migration trends worldwide.
The report said that given India’s capacity to generate new millionaires, the outflow is not particularly concerning.
According to the report, India’s HNWI population is projected to experience a remarkable 80 percent increase by 2031, positioning India as one of the world’s fastest-growing wealth markets during this period.
This growth will be primarily fuelled by thriving financial services, healthcare, and technology sectors within the country.
It has also observed a trend of affluent individuals returning to India, and as the standard of living continues to improve, it anticipates a significant influx of wealthy individuals moving back to India in greater numbers.
The report cited New World Wealth, a firm tracking global wealth migration trends for over a decade, as saying that the UK will have 3,200 millionaires, and Russia will have 3,000 HNWIs.
Dominic Volek, group head of private clients for the company, said the recent and persistent turmoil has caused a shift where more investors are considering relocating their families for a range of reasons, from safety and security, to education and healthcare, to climate change resilience and even crypto-friendliness.
“Nine of the top 10 countries for forecast net HNWI inflows in 2023 host formal residence by investment programs that encourage foreign direct investment in return for the right to reside, which can also lead to citizenship in some cases. Investors see the clear value of diversifying their domicile portfolios as the ultimate hedge against both regional and global volatility, now and in the future,” Volek said.
Prohibitive tax legislation, coupled with convoluted, complex rules relating to outbound remittances that are open to misinterpretation and abuse are cited as among the issues that triggered the trend of investment migration from India.
Dubai and Singapore remain preferred destinations for wealthy Indian families, with the Gulf city – also known as the ‘5th City of India’ – particularly attractive for its government-administered global investor Golden Visa programme, favorable tax environment, robust business ecosystem and safe, peaceful environment.
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