In Short
- India to lose 6,500 HNIs in 2023, says report
- Outflow unlikely to hurt GDP growth
- Dubai, Singapore top destinations for outgoing Indian HNIs
By India Today Business DeskIndia is expected to lose thousands of high-net-worth individuals (HNIs) in 2023, but the exodus is unlikely to have any significant impact on the country’s GDP growth.
According to the Henley Private Wealth Migration Report 2023, around 6,500 HNIs are expected to leave India this year. The report is based on wealth and investment migration trends worldwide.
As per Henley and Partners, HNIs are individuals with an investable wealth of $1 million or more.
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Will HNI exodus hurt Indian economy?
While India has been ranked second after China in terms of the outflow of dollar millionaires this year, the country’s position is likely to improve from 2022, when its outflow of HNIs stood at 7,500. Therefore, the number of dollar millionaires leaving the country is expected to reduce this year.
In addition, Andrew Amoils, Head of Research at New World Wealth, suggests that the outflow of HNIs from India does not pose any significant threat, as the country “produces far more new millionaires than it loses to migration.”
To add some context to this, a Credit Suisse Global Report from 2022 suggested that dollar millionaires in India are expected to more than double by 2026.
Moreover, a recent study conducted by global real estate agency Knight Frank said, “India is expected to see a 58.4% rise in its UHNWI population, a faster rate than in the previous five years.”
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India’s HNI exodus problem
While the number of HNIs in India is growing at a rapid pace, the country has also faced a high exodus of dollar millionaires over the years. Experts pin the blame on high taxation along with other investment-related complications.
Most wealthy Indian families prefer moving to Dubai and Singapore, according to the report. Dubai is more attractive for its government-administered global investor Golden Visa program, along with a favorable tax environment and robust business ecosystem.
The report also suggested that Australia could witness the highest net inflow of millionaires in 2023, at over 5,000. The UAE is expected to welcome around 4,500 dollar millionaires, while Singapore could add 3,200 HNIs in 2023.
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