According to a survey by the Henley Private Wealth movement survey 2023, which monitors wealth and investment movement trends globally, an estimated 6,500 high-net-worth people (HNIs) will likely leave India in 2023.
India comes in second to China, which is expected to lose 13,500 HNIs this year. According to the prediction, fewer HNIs are expected to leave than the 7,500 millionaires who left the previous year.
It claimed that the outflow was not particularly worrying because India has the ability to produce new millionaires. The population of high-net-worth individuals is anticipated to grow by an astounding 80% by 2031, making India one of the world’s most rapidly expanding wealth marketplaces during this time. The country’s booming banking, healthcare, and technology industries will be the main drivers of this expansion.
It has also noticed a pattern of wealthy people returning to India, and when living conditions rise even further, it predicts a sizable influx of wealthy people returning to India in a larger number.
According to the estimate, the UK will have 3,200 millionaires and Russia will have 3,000 HNIs, citing New World Wealth, a company that has been monitoring patterns in the movement of wealth throughout the world for more than ten years.
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Reasons for departing from India
For a variety of reasons, including safety and security, education and healthcare, climate change resilience, and even cryptocurrency friendliness, more investors are now considering relocating their families, according to Dominic Volek, group head of individual clients for the company.
“Nine of the top 10 nations with regard to projected net inflows of HNIs in 2023 are home to official residence-by-investment programs that promote investment from overseas in exchange for the right to stay, which, in some circumstances, can also result in citizenship. According to Volek, investors recognize the obvious benefits of diversifying their domicile portfolios as the best insurance against local and global volatility today and in the future.
“Prohibitive tax legislation combined with complicated, complicated regulations relating to external remittances that are open to misinterpretation and abuse, are just a few issues that have sparked the trend of investment migration from India,” said Sunita Singh-Dalal, partner, private wealth and family offices at Hourani. For wealthy Indian families, Dubai and Singapore continue to be top travel destinations. The former, often referred to as the “5th City of India,” is especially appealing because to its government-managed “Golden Visa” initiative for foreign investors, favourable tax environment, solid business ecosystem, and secure, tranquil climate.
According to Rohit Bhardwaj, director of private clients at the company’s India branch, “India exhibits a solid wealth presence with a current count of about 3.5 lakh individuals with significant assets (HNIs) living in the country. Numerous wealth centers can be found in Asia, and only this year, the number of inquiries from South Asia in the first four months of 2023 amounted to 72.2% of the total inquiries registered the previous year, which was a record year. We anticipate that this growing trend will continue this year as Indian investors express a desire for additional citizenship and alternate residences.
