What’s Behind Millionaires’ Exodus from India?

2 Perspectives to Consider Regarding the Outflow of Millionaires

Newsreel Asia Insight #258
June 21, 2024

Around 4,300 Indian millionaires are expected to migrate out of India in 2024, marking it as the third-highest nation in terms of millionaire exodus this year, according to a report by the investment migration consultancy Henley & Partners. The report identifies the United Arab Emirates as a top destination for these affluent individuals. So, what prompts these millionaires to leave India?

Globally, around 128,000 millionaires are expected to relocate in 2024, with the U.A.E. set to receive the highest number of these affluent migrants, the Henley & Partners report says, as also reported by Scroll.in. This migration reflects broader global trends of geopolitical instability, economic uncertainty and the search for safer, more stable environments.

India ranks third in millionaire outflow behind China and the U.K. China is set to see the highest loss with 15,200 millionaires leaving, while the U.K. will experience a significant increase in its millionaire exodus to 9,500. Noteworthy is the role of investment migration programs in attracting these millionaires to countries like the U.A.E, according to the report.

There are two perspectives to consider regarding the outflow of millionaires from India.

Firstly, the increase in the number of high-net-worth individuals (HNWIs)—defined as individuals with liquid investable wealth of USD 1 million or more—may indicate quantitative economic growth within India itself.

Further, many of these millionaires maintain business interests and secondary homes in India, which suggests continued ties and contributions to the local economy.

Furthermore, this year, despite the large numbers, the outflow of Indian millionaires has actually decreased from last year’s figure of 5,100.

Secondly, the decision by high-net-worth families to relocate can be attributed to a variety of factors, including safety and security; financial concerns; taxation and retirement; work and business opportunities; lifestyle elements such as climate, nature and scenery; educational opportunities for their children; healthcare quality; and overall standard of living, Henley & Partners explains in another report. Many of these factors highlight potential issues in India’s economic and social landscape that require attention.

Further, while India may have been producing a large number of millionaires, recent economic growth in the country has led to extreme wealth disparities, surpassing levels seen during British rule, according to a recent World Inequality Lab study reported by Article 14. This concentration of wealth, more severe than in the U.S., Brazil and South Africa, finds the top 1% of Indians holding a disproportionately large share of the nation’s wealth.

The World Inequality Lab study contrasts India’s current wealth concentration with its past, more equal distribution. Despite India’s impressive GDP growth of 7.3% in 2023-24, the study shows a sharp increase in inequality since the early 2000s, intensifying after 2014-15.

If you’re wondering why the U.K. is witnessing a large outflow of millionaires, the Henley & Partners report notes that traditionally, the U.K., particularly London, had been a prime destination for migrating millionaires, attracting wealthy families from mainland Europe, Africa Asia and the Middle East from the 1950s to the early 2000s. However, this trend reversed about a decade ago, with more millionaires leaving than arriving. Post-Brexit, from 2017 to 2023, the U.K. saw 16,500 millionaires emigrate.