The economic landscape of India is taking an unexpected developmental turn with the increased number of millionaires leaving India and settling abroad. The major reason for this turnaround is, the rich looking for alternate residency for better business climate and personal growth.
India appears to be at crossroads due to this trend of migration as the well-heeled do not want to lose the global opportunities. The migration of millionaires has significant economic implications. “Migrating millionaires are a vital source of forex revenue. They tend to bring their money with them when they move to a country.
Around 20% of them are entrepreneurs and company founders who may start new businesses. This further create local jobs in their new country, and the percentage rises over 60% for centi-millionaires and billionaires,” Andrew Amoils, Head of Research at New World Wealth, said.
According to the worldwide investment migration advisory firm Henley & Partners report, 4,300 millionaires may relocate in 2024. The report underscore India’s role as a major contributor to the worldwide phenomenon of high-net-worth individuals migrating overseas.
The country witnessed the departure of 5,100 millionaires in 2023. This raised the level of anxiety among wealthy Indians regarding the state of the economy and personal safety in the country.
Reason of the shift
The reports mention several reasons for the relocation of these millionaires which include concerns about:
- Their children’s education,
- Their safety, financial and tax advantages,
- Better retirement options
- Business prospects
- A more desirable way of life and better living conditions
According to the statement by Dr. Hannah White OBE, Director and CEO of the Institute for Government in the UK, maintaining political and economic stability is essential in keeping HNWIs in the country.
Where are they migrating?
While considering relocating, UAE is the top choice for Indian millionaires. It projects that in 2024, UAE is set to attract the inflow of 6,700 wealthy migrants
But, why UAE?
The UAE’s zero income tax policy, lavish lifestyle choices and strategic location and gold visa programs are said to be the factors luring the millionaires.
The wealth management ecosystem in the UAE has undergone incredible growth and development. Sunita Singh-Dalal, a partner at Hourani in Dubai, states, “The UAE has introduced a robust regulatory framework that offers the wealthy a range of innovative solutions to protect, preserve and enhance their wealth in less than five years.”
Which other countries may see this same situation?
Countries like China, UK, South Korea, Brazil, South Africa, Taiwan, Vietnam and Nigeria, may expect millionaires shift. Each of these countries have their own issues that impact the decision of millionaires to move abroad.
Global Migration
It is predicted that a record 128,00 millionaires are expected to relocate to a different country, breaking the previous high of 120,000 in 2023. These elite migrants’ top destinations are the United States and the United Arab Emirates.
The rising trend of millionaires departing India and other countries indicates global phenomenon, influenced by range of factors, including economic scenarios, personal safety and business framework. Reference Link:
Naina Jaggi is an author deeply rooted in Journalism, mainly writing on lifestyle, entertainment, travel, politics and financial markets. This diverse experience has allowed her to blend rich details with engaging narratives that capture the essence of various worlds. When she is not crafting tales, you’ll find her immersed in music and enjoying the company of dogs. She is also into K-dramas, thriller and horror movies that fuel her imagination, bringing the same spark to her stories.
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