Wealth Drain Is Real & Is Scary – 4000 Indian Millionaires Left Their Motherland In 2015
Besides better standard of living, better facilities and more potential to generate wealth, what can be the reason that 4000 Indian millionaires (in dollars) have ditched their motherland and decided to relocate overseas?
We are still pondering over this question, as latest report from New World Wealth is forcing us to think hard about the possibility of massive wealth drain from India.
As per the report, out of 2.36 millionaires from India, 2% or 4000 left India and settled in another country. Last year, we had reported how India has beaten the massive Russia is creating billionaires and is now ranked after China and US in creating wealth. But with such large scale exodus of the rich, how long will it take to slip back in the ranking?
In 2014, we had proudly stated that Mumbai has more billionaires than Tokyo; but going by the rate of wealth drain, very soon we will lose this pride.
Interestingly, this new report on exodus of the rich perfectly matches with our earlier report on the rich leaving India and choosing another country. Wall Street reported that 43,400 Indian millionaires have left India in the last 10 years; whereas New World Wealth said that in the last 14 years, 61,000 Indian millionaires have ditched their motherland in the last 14 years.
Note here, that the report specifically said that India and China (whose 9,000 millionaires left their country; 1% of their overall millionaires) have nothing to worry, as the number of new millionaires formed is much greater than those who are leaving their countries. The report said, “The outflows from India and China are not particularly concerning as these countries are still producing far more new millionaires than they are losing. Also, once the standard of living in these countries improves, we expect several wealthy people to move back.”
But why PM Modi’s Make in India and Digital India campaigns are failing to retain their best talent? Should the Govt. do something else to stop this wealth drain?
Significant Highlights from The Report
– Sydney is the city which received maximum number of new millionaires in 2015. 4000 or 4% new millionaires arrived in Sydney in 2015; Another Australian city Melbourne is ranked #2 as it received 3000 new millionaires. Tel Aviv was ranked #3; Dubai #4 (2000 new millionaires); San Francisco #5 and Vancouver was ranked #6.
– Australian cities received maximum inflow of millionaires from China, Europe, UK, USA and South Africa
– Tel Aviv received maximum millionaires from France
– USA received maximum inflow from Asia and China
– Dubai is attracting the millionaires from North Africa, notably Egypt, Algeria, Morocco and Turkey
– In London, 3000 new millionaires were formed, while 2500 left the city. Interestingly, those who left the city were UK citizens, while those who entered were Non-European citizens
– Paris lost 6% of their millionaires in 2015; while Rome lost 7%; Chicago lost 2% and Athens in Greece lost massive 9%
– Overall, top 5 countries where maximum millionaires moved in are: Australia (8000 new millionaires); USA (7000); Canada (5000); Israel (4000); UAE (3000)
– Top 5 countries which lost maximum millionaires are: France (10,000 millionaires); China (9000); Italy (6000); India (4000); Greece (3000)
The report also mentions specific reasons which prompted such massive outflow; but for India, no specific reasons were mentioned. If you are aware of the reason why rich Indians are leaving us, then do share your opinions by commenting right here.
You can access the full report here.