More Indian millionaires leaving for this country

New Delhi: Wealthy Indians are increasingly seeking new horizons, with an estimated 4,300 millionaires expected to leave the country this year, primarily heading to the UAE, according to a report by Henley & Partners, an international investment migration advisory firm. This trend follows last year's exodus of 5,100 millionaires.

India, which has now surpassed China as the world's most populous nation, is projected to rank third globally in millionaire migrations, trailing only China and the UK. Despite the significant number of high-net-worth individuals leaving, the net outflow from India is less than 30% of China's.

The report points out that while India sees a substantial outflow of wealthy individuals each year, the impact is mitigated by the country's robust economic growth. India has seen an 85% increase in wealth over the past decade, producing more new millionaires than it loses.

Interestingly, many of the departing millionaires maintain business interests and second homes in India, indicating continued economic ties. This trend reflects a dual strategy of global diversification while keeping roots in the home country.

UAE's Growing Appeal

Indian private banks and wealth management firms are increasingly establishing a presence in the UAE to cater to their clients' needs for global diversification and investment advisory services. Firms like Nuvama Private and LGT Wealth Management are notable examples of this expansion.

Other banks, including Kotak Mahindra Bank and 360 ONE Wealth, are also enhancing their services in the UAE to remain competitive in providing wealth management solutions to Indian families.

Global Millionaire Migration

The Henley & Partners report forecasts that around 128,000 millionaires will migrate globally in 2024, with the UAE and the USA being the most favored destinations. These migrating millionaires bring significant benefits to their new countries, contributing to foreign exchange reserves and stimulating local stock markets through their investments.

Additionally, the businesses established by these high-net-worth individuals often create numerous high-paying jobs, benefiting the middle class. Historical examples include global giants like Microsoft, Apple, and Tesla, which have had significant economic impacts in the USA.

A millionaire, as defined in the report, is someone with liquid investable assets of $1 million or more.

Reasons for the Exodus

High-net-worth families are choosing to relocate for various reasons, including better safety, financial and tax benefits, retirement prospects, business opportunities, superior lifestyles, educational opportunities for their children, advanced healthcare systems, and overall improved quality of life.

In summary, while India continues to witness the migration of its millionaires, the country's dynamic economic growth and the global expansion of its financial services ensure that it remains a significant player on the world stage.