In 2024, an estimated 4,300 Indian millionaires are expected to relocate overseas, according to a recent report by investment migration consultancy Henley & Partners. This places India as the third highest in terms of net outflow of high-net-worth individuals (HNWIs) globally, following China with 15,200 and the United Kingdom with 9,500 projected emigrants. Despite this significant number, the figure represents a decrease from the 5,100 Indian millionaires who moved out of the country in 2023.
The Henley & Partners report forecasts a record-breaking 128,000 millionaires worldwide relocating in 2024, surpassing the previous high of 120,000 in 2023. This marks a substantial 16% increase from the 110,000 who migrated in 2019, prior to the COVID-19 pandemic. Leading the list of preferred destinations are the United Arab Emirates and the United States, reflecting their appeal as attractive hubs for affluent individuals seeking new opportunities.
A millionaire is defined as a person with liquid investable wealth of at least $1 million (approximately Rs 8.3 crore). The report by Henley & Partners provides a nuanced perspective on the exodus of Indian millionaires. Dominic Volek, Group Head of Private Clients at Henley & Partners, remarked, “India continues to lose large numbers of millionaires, especially to the UAE. However, these outflows are not particularly concerning as India continues to produce far more new HNWIs than it loses to emigration.” He added that many of these emigrants maintain business interests and second homes in India, which is a positive sign for the country’s economic stability.
While India faces a notable outflow of millionaires, other nations grapple with even more significant challenges. China, for instance, is expected to witness a net outflow of 15,200 millionaires in 2024. This trend is driven by factors such as slowing economic growth, geopolitical tensions, and the allure of opportunities abroad.
Similarly, the United Kingdom anticipates a net loss of 9,500 millionaires. The aftermath of Brexit, ongoing political uncertainty, and changes to the non-domicile tax regime have created a challenging environment for HNWIs in the UK. These factors contribute to a broader narrative of global wealth migration, where economic, political, and social dynamics play critical roles in influencing the movement of the wealthy.
The Henley & Partners report underscores the implications of millionaire migration for both source and destination countries. For nations experiencing an outflow, the loss of wealth and expertise can pose economic challenges. Conversely, destination countries stand to benefit from the influx of capital, entrepreneurial activity, and global connections brought by these HNWIs.
In conclusion, the movement of Indian millionaires in 2024 reflects broader global trends in wealth migration. While the numbers are significant, India’s capacity to generate new high-net-worth individuals mitigates potential concerns. As countries navigate this new era of unprecedented millionaire migration, adaptability and proactive strategies will be essential to harness the opportunities and address the challenges presented by these shifting tides.
