Wealth Migration Report: Why Are Indian Millionaires Moving To This Country?

According to the Henley Private Wealth Migration Report 2024, India is projected to witness a net loss of 4,300 millionaires this year. This figure, although slightly lower than the 5,100 departures in 2023, highlights India's position as a prominent source of high-net-worth individuals (HNWIs) exiting the country. However, the movement of wealth from India mirrors broader global patterns driven by geopolitical tensions, economic uncertainties, and social upheaval.

The report stated that approximately 5,100 Indian millionaires moved abroad in 2023. According to the report, "India continues to see a significant number of millionaires leaving, especially to the UAE. However, the report suggests that this trend is not a major concern as India continues to generate more new high-net-worth individuals (HNWIs) than it loses to emigration."  The terms 'millionaires' and 'HNWIs' refer to individuals with a liquid wealth of $1 million (₹8.34 crore) or more.

Comparison With Global Peers

According to the survey, India is expected to rank third worldwide in terms of millionaire migrations, trailing only China and the United Kingdom. India’s net millionaire outflow, as indicated by the report, represents less than 30% of China’s equivalent migration rate.  Despite outward movements, India continues to foster robust wealth creation, with an impressive 85% growth in high-net-worth individuals over the past decade.

According to the research, India ranks tenth in the world for millionaires, with 326,400 HNWIs, while China ranks second with 862,400. Aside from that, the research stated that India ranked fourth in terms of centi-millionaires, with 1,044 people with $100 million in fortune, trailing Germany with 1,075, China (2,352), and the United States (9,850).

Key Destinations for Indian Millionaires

Several factors contribute to the migration decisions of Indian millionaires. Economic opportunities, tax regimes, lifestyle preferences, and global mobility are key considerations influencing these affluent individuals. 

The United Arab Emirates

The United Arab Emirates (UAE) continues to be a leading destination for Indian millionaires. The country is anticipated to attract a record net inflow of 6,700 wealthy migrants in 2024, thanks to its appealing zero income tax policy, innovative golden visa programs, luxurious lifestyle, and strategic geographical location. Sunita Singh-Dalal, Partner at Hourani in Dubai, states in an interview with The Economic Times, “The evolution and development of the UAE’s wealth management ecosystem is unprecedented. In less than five years, the UAE has introduced a robust regulatory framework that provides the wealthy with a range of innovative solutions to protect, preserve, and enhance their wealth.”

According to the survey, the UAE may become the largest recipient of millionaire migration, adding 6,800 millionaires by 2024, followed by the United States and Singapore. Between 2013 and 2023, Indian millionaires in the UAE climbed by 85%.

Other Top Destinations for Migrating Millionaires

In addition to the UAE, several other countries are prominent destinations for wealthy migrants. These include:

• United States
• Singapore
• Canada
• Australia

These nations are projected to experience significant net inflows of HNWIs, benefiting from their economic contributions and the job creation that typically accompanies such migrations.

Popular Investment Migration Programs

Indians are among the top applicants for residence and citizenship by investment programs. Preferred choices include:

• Portugal’s Golden Residence Permit Program
• Greece’s Golden Visa Program
• Spain’s Residence by Investment Program
• Malta’s Citizenship by Naturalisation for Exceptional Services by Direct Investment

In the Caribbean, programs such as Antigua and Barbuda’s Citizenship by Investment Program and Grenada’s Citizenship by Investment Program continue to attract affluent Indian families.

Dominic Volek, Group Head of Private Clients at Henley & Partners, marks 2024 as a crucial year for global wealth migration. He notes during an interview with The Economic Times, “An unprecedented 128,000 millionaires are expected to relocate worldwide this year, eclipsing the previous record of 120,000 set in 2023. This great millionaire migration signals a profound shift in the global landscape, with far-reaching implications for both the countries they leave and those they move to.”

Reasons Behind the Exodus from India

A mix of factors drives the departure of millionaires from India. Key among them are the pursuit of better lifestyles, safer environments, and access to superior health and education services. Dr Hannah White, OBE, Director and CEO of the Institute for Government in London, also stresses the importance of economic and political stability in retaining HNWIs.

However  India is not alone in experiencing a significant outflow of wealthy individuals. Other notable countries facing similar challenges include:

• China
• United Kingdom
• South Korea
• Brazil
• South Africa
• Taiwan
• Vietnam
• Nigeria

Each of these countries faces unique socio-economic and political challenges that influence their patterns of millionaire migration.

Andrew Amoils, Head of Research at New World Wealth, also explains how the migration of millionaires can have economic consequences, “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.”