While brain-drain has been a rising concern for policy-makers in India and other developing countries for decades, there is another exodus that may well be as insidious, if not more. It has been revealed in a report that as many as 4300 Indian millionaires are set to leave the country for what they consider to be greener pastures.
India is not the only loser, China too is losing its millionaires to other developed countries including the US, UAE, Singapore, Canada, and Australia. This was revealed by the Henley Private Wealth Migration Report 2024 released by international investment migration advisory firm Henley & Partners.
Notably, as many as 128,000 millionaires are expected to migrate in 2004 and that this number will jump to 135,000 in 2025. It is set to beat the earlier record, set in 2023, when as many as 120,000 people migrated. The biggest beneficiary country where as many as 6700 millionaires may move is the UAE. The US and tiny Singapore will make it to the list behind UAE in terms of popularity for global millionaire community.
This migration of millionaires (High Net Worth Individuals with liquid investable wealth of USD 1 million or more) has been happening for years and, if it is any solace, this year (2024) those migrating from India will be less in number than last year. In 2023, as many as 5,100 millionaires exited India forever. That is cold comfort as India will stay virtually on top of the list of countries where high-net-worth individual (HNWI) are leaving. It is on 3rd spot.
Why Millionaires move
The reasons are quite varied, but may differ from person-to-person. Many migrate to ensure they do not pay more tax, others are looking at enhancing their wealth by taking advantage of opportunities available in these countries.
Reason why Indian millionaires are leaving include safety, a varied and higher level of lifestyle, better health facilities and often because of children, access to better education.
Also, among the top factors are absence of policies that promote economic stability and growth.
All may not be gloom and doom for India though. “India continues to lose large numbers of millionaires, especially to the UAE. However, in our view these outflows are not particularly concerning as India continues to produce far more new high net worth individuals (HNWIs) than it loses to emigration,” the report stated.
It also highlighted that Indians tend to maintain their relationship with their country of origin by keeping second homes there and even continue maintaining business interests there.
And why UAE? Because of its zero income tax, golden visas, luxury lifestyle, and strategic location, says report.
But as Dr. White points out, HNWIs are leaving these other countries for quite different reasons from the UK. “Both China and India are seeing high net outflows because of the success of their sizeable economies in generating new millionaires, although slowing wealth growth in China in recent years could mean sustained losses become more damaging over time. As do those from many other developing nations, including notably Brazil, Vietnam, South Africa, and Nigeria, Indian millionaires often depart the sub-continent in search of a better lifestyle, safer and cleaner environments, and access to more premium health and education services.
Moving millionaires’ impact
The impact on both countries is massive. The host country gains in terms of the money these migrating millionaires bring. This will help the local economy grow in many ways and perhaps even lead to establishment of new companies and creation of new jobs.
The migration of millionaires has significant economic implications. Andrew Amoils, Head of Research at New World Wealth, said, “Migrating millionaires are a vital source of forex revenue as they tend to bring their money with them when they move to a country. Also, around 20% of them are entrepreneurs and company founders who may start new businesses and therefore create local jobs in their new country, and this percentage rises to over 60% for centi-millionaires and billionaires”.
Which countries are impacted?
Joining India and China on this list of migrating millionaires is the UK. In fact, at 9500, it will lose more millionaires than even India. The others include Nigeria, Vietnam, South Korea, Brazil, South Africa, and Taiwan.
Dominic Volek, Group Head of Private Clients at Henley & Partners, says “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.”
Check list of countries losing millionaires
China: 15,200
UK: 9500
India: 4,300
South Korea: 1,200
Russia: 1,000
Brazil: 800
South Africa: 600
Taiwan: 400
Nigeria: 300
Vietnam: 300
Check list of countries where millionaires are migrating to
UAE: 6700
US: 3800
Singapore: 3500
Canada: 3200
Australia: 2500
Italy: 2200
Switzerland: 2500
Greece: 1200
Portugal: 800
Japan: 400
A report has revealed that a shocking number of millionaires are migrating from India to the UAE and other countries. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
