Many Millionaires Likely to Move Abroad as NRIs This Year
Wealth Migration: India’s Millionaire leaving in 2024
A recent Henley and Partners report highlights that India is projected to see 4,300 millionaires depart in 2024, placing it among the top three countries experiencing significant wealthy emigration, alongside China and the UK. This occurs amidst a global trend of approximately 128,000 millionaires relocating in 2024, a shift with implications for both origin and destination countries.
Favored Relocation Destinations for India’s wealthy
The United Arab Emirates and the United States emerge as primary choices for India’s relocating millionaires.
The UAE’s appeal stems from its golden visa program, designed to attract global investors, entrepreneurs, and skilled professionals. The emirate is expected to welcome a net influx of 6,700 millionaires in 2024. Its recent introduction of a 9% corporate income tax in 2023 has paradoxically enhanced its status as a haven for the wealthy, complementing its strategic location and world-class infrastructure.
Other popular destinations include Singapore, Canada, and Australia. Emerging trends show France actively courting Indian students, aiming to host 30,000 by 2030. Germany has also seen a substantial 107% increase in Indian students over four years, known for its affordable living and quality education.
Economic Impact: Outflow or inflow?
While the departure of 4,300 millionaires from India seems significant, it’s crucial to contextualize this within India’s broader economic landscape. The country has experienced an 82% increase in millionaires from 2013 to 2023, indicating it’s creating more wealthy individuals than it’s losing. India’s position among the top three countries globally in terms of billionaire population further underscores its robust economic environment.
Many emigrating Indian millionaires maintain substantial business interests and secondary residences in India. Their continued economic ties through retained assets and investments suggest an ongoing contribution to India’s economy, regardless of their physical location.
Drivers of Millionaire Migration
Several factors motivate wealthy Indians to relocate:
- Safety and security considerations
- Financial planning, including taxation and retirement strategies
- Pursuit of enhanced business and career opportunities in favorable economic climates
- Lifestyle preferences, such as cleaner air and less congestion than in some Indian cities
- Access to elite educational institutions for family members
Conclusion
Indian millionaires are drawn to countries like the US, Australia, and Canada in search of improved living standards, safer environments, and superior education and healthcare services.
The UAE has emerged as a particularly attractive destination, offering a business-friendly atmosphere and tax efficiencies that appeal to high-net-worth individuals from India. These factors combine to create compelling reasons for wealthy Indians to consider relocation.
FAQS’
1. Why are Indian millionaires moving abroad in 2024?
Ans- Indian millionaires are relocating for reasons like better safety, tax benefits, improved business opportunities, better living conditions, and access to top education.
2. How many Indian millionaires are expected to move this year?
Ans- About 4,300 Indian millionaires are projected to leave India in 2024.
3. Which countries are Indian millionaires moving to?
Ans- The most popular destinations are the UAE and the US, with other choices including Singapore, Canada, and Australia.
4. Why is the UAE a popular choice for Indian millionaires?
Ans- The UAE attracts millionaires with its golden visa program, strategic location, and high-quality infrastructure, despite its new 9% corporate tax.
5. How does the migration of millionaires affect India’s economy?
Ans- Even with 4,300 millionaires leaving, India has seen an 82% increase in millionaires over the past decade. Many of these millionaires still invest in India, helping the economy.
6. How does the UAE’s corporate tax affect its appeal?
Ans- Although the UAE now has a 9% corporate tax, its favorable business environment and tax policies still make it an attractive place for millionaires.
7. What trends are emerging for Indian students studying abroad?
Ans- France aims to host 30,000 Indian students by 2030, and Germany has seen a big increase in Indian students due to its affordable living and quality education.
8. What factors influence Indian millionaires to move abroad?
Ans- Key factors include better safety, tax advantages, improved business and career prospects, better living conditions, and access to top educational institutions.
9. How does the migration of millionaires affect India’s global economic standing?
Ans- India’s economy remains strong, with a growing number of millionaires and a high count of billionaires. The impact of millionaire migration is balanced by ongoing economic growth and investments from those who stay connected to India.
10. Will the departure of millionaires have a long-term effect on India’s economy?
Ans- The impact might be noticeable in certain areas, but India’s growing number of millionaires and continued investments suggest the economy will stay robust.
