A new study reveals that India has been grappling with a steady and significant outflow of high-net-worth individuals (HNWIs) in recent years. The Henley Private Wealth Migration Report 2023 outlines this trend, defining HNWIs as individuals with investable assets exceeding $1 million, excluding their primary residences. The report suggests an exodus of 6,500 HNWIs from India in 2023, indicating a sharp increase from previous years.
The fiscal landscape of India, characterised by high taxation rates and regulatory challenges, is noted as the primary driving force behind this mass relocation. As the report cites, “This trend of migration is a worrying sign for India as it could lead to a potential talent drain and economic downturn.”
India’s wealthy citizens are exploring countries that offer not only a business-friendly environment but also a superior quality of life. The need for political stability, security, and better education opportunities for their children are among the other reasons prompting the departure of HNWIs from India.
On the receiving end of this global wealth shift, Australia has emerged as the most preferred destination for migrating millionaires. With a projected net influx of 12,000 HNWIs in 2023, Australia continues to strengthen its image as a sought-after destination for the world’s wealthy. The country’s stable economy, world-class healthcare, and high living standards contribute to its appeal.
Meanwhile, China, one of the world’s largest economies, is witnessing the most substantial outflow of HNWIs. The report projects a considerable exodus of 13,500 HNWIs from China this year. Similarly, the United Kingdom is experiencing a significant outflow of millionaires, largely attributed to the economic uncertainties following Brexit and increased tax rates. The UK is expected to see a net outflow of 3,200 HNWIs in 2023.
Canada, traditionally a preferred location among migrating millionaires, has witnessed a downturn in recent years. The country, historically ranked among the top ten nations for HNWI inflows, has fallen to the 11th position this year.
The Henley Private Wealth Migration Report, provided by the global wealth intelligence firm New World Wealth, meticulously tracks the migration of dollar millionaires who have relocated and remained in a new country for more than six months. While the Covid-19 pandemic significantly disrupted these trends and tracking of migratory millionaires in 2020, recovery began in 2022, and forecasts for 2023 and 2024 indicate a continuation of this upward trend.
Despite the ongoing outflow, India remains within the top 20 countries for total private wealth held, as per the estimates by New World Wealth. Monitoring India’s resilience amidst this millionaire migration trend will be critical in the coming years.
The report’s extensive data and insights make it an indispensable resource for global citizens, investors, wealth managers, and private bankers. The vast amount of data presented gives a unique insight into global trends influencing wealth distribution and movements.
The complete Henley Private Wealth Migration Report, officially published on 13 June 2023, provides a detailed understanding of the methodology used and deeper insights. Readers are encouraged to delve into the full report for a comprehensive understanding of the global wealth migration trend.
This ongoing trend of wealth migration is not just a movement of wealth and individuals; it reflects the changing global dynamics and is indicative of the shift in economic power and influence. The movement also provides insight into a country’s economic health and appeal. The data and analysis presented in this report offer a unique perspective, delivering crucial intelligence on the patterns and influences affecting global wealth.