4,300 millionaires likely to move out of India in 2024, many will move to UAE: Report

Digital Desk: An estimated 4,300 Indian millionaires are expected to relocate abroad in 2024, according to a report by Henley & Partners. This makes India the country with the third-highest net outflow of millionaires, following China with 15,200 and the United Kingdom with 9,500. While this projected exodus is significant, it represents a decline from the 5,100 millionaires who left India last year.

Globally, approximately 128,000 millionaires are anticipated to migrate to new countries in 2024, marking a record-breaking movement compared to the 120,000 who relocated in 2023. This 16% increase from the 110,000 who moved in 2019 highlights a growing trend among high-net-worth individuals (HNWIs), defined as persons possessing liquid investable wealth of at least $1 million (or Rs 8.3 crore).

The United Arab Emirates (UAE) is poised to attract the highest number of migrating millionaires in 2024, with an expected net inflow of 6,700. The UAE’s appeal lies in its attractive golden visa program, luxurious lifestyle, and business-friendly environment. Despite the introduction of a 9% corporate income tax in 2023, the UAE remains a tax-efficient and competitive economy that continues to draw substantial foreign investment.

Sunita Singh-Dalal, a partner at Hourani in the UAE, emphasizes the country's allure: “The stable political framework, advanced infrastructure, ease of doing business, diverse investment opportunities, and commitment to ESG initiatives are all reasons why the UAE is a prominent recipient of foreign investment and a preferred destination for relocating HNWIs.”

Indian private banks and wealth management platforms are also increasing their presence in the UAE to provide seamless investment advisory services to their clients. Firms like Nuvama Private, LGT Wealth Management, Kotak Mahindra Bank, and 360 ONE Wealth are proactively supporting Indian clients with their global diversification and expansion needs.

Other Top Destinations for Millionaires

Besides the UAE, other popular destinations for migrating millionaires include the United States, Singapore, Canada, and Australia. These countries offer various incentives, including robust economies, political stability, and appealing lifestyle options, making them attractive to HNWIs seeking new opportunities and environments.

Implications for India

Despite the significant outflow of millionaires, the report suggests that this trend is not particularly alarming for India. The country continues to generate new HNWIs at a rate that outpaces those leaving. Additionally, many Indian millionaires who emigrate tend to maintain business interests and second homes in India, contributing positively to the domestic economy.

In contrast, other nations face more severe challenges. China is expected to experience a net outflow of 15,200 millionaires in 2024, driven by slowing economic growth, geopolitical tensions, and the allure of international opportunities. The United Kingdom is also projected to see a net loss of 9,500 millionaires, largely due to the fallout from Brexit, political uncertainty, and changes to the non-domicile tax regime.

The migration of millionaires is a complex phenomenon influenced by various economic, political, and social factors. For India, while the outflow of 4,300 millionaires in 2024 is notable, the country’s ability to produce new HNWIs and retain economic ties with those who leave mitigates potential negative impacts. On a global scale, countries like the UAE and the United States continue to dominate as top destinations for wealthy individuals seeking better opportunities and stability.

The ongoing trend of millionaire migration underscores the importance of favorable economic policies, political stability, and attractive living conditions in retaining and attracting HNWIs. As nations vie for these valuable residents, ensuring a competitive, welcoming environment remains crucial in this new era of unprecedented wealth migration.