Mass Exodus of Rich Indians: 43,400 Millionaires Have Left India In Last 10 Years
For every action, there is an equal and opposite reaction: Newton’s third law of motion holds true everywhere.
Last year we had reported that India is now among the fastest wealth creating nation, all over the world. There are 175,000 millionaire households in India right now, which is 16th highest in the world. And Indian households having assets worth $100 million+ is 284,000, which is more than millionaire households.
By 2018, we will be producing millionaires at an astronomical rate of 129% by the time 2018 arrives.
In October last year, we had reported that there are more billionaires in Mumbai than there are in Tokyo.
But, there is a sad truth behind this shining example of wealth creation as well: Indian millionaires are leaving the country at an alarming rate.
As per a report by Wall Street Journal, 43,400 millionaires from India have permanently left the country to settle in Western world. In terms of millionaires leaving India, we are only after China, where 76,200 millionaires have left their native country for greener pastures elsewhere.
The New Money Drain
The new money drain out of India is indeed alarming and catching up quicker than we can expect.
Yesterday, we had reported that India’s super rich are now increasingly buying real estate in foreign locations. India’s ultra high net worth Individuals have bought 166% more real estate in foreign locations compared to last 10 years.
And if we collate both of these reports, then a shocking truth emerges: The rich and super rich are buying global properties to relocate!
Although only 25% of the Indian super-rich purchase global properties for residential purposes, the rest bought it for investment related objectives, but the trend is clear.
The rich are leaving India, and opting for Western countries, and it’s a disturbing trend.
Where Are They Going?
As per the Wall Street Journal report, rich Indians, loaded with money, are mainly opting for Western countries such as USA and UK. In fact, London was specially mentioned as one of the favorites for India’s super rich.
In the last 10 years, around 114,000 super rich (with assets more than $10 million) settled in London alone from various countries, which was followed by Singapore where 45,000 new rich arrived and permanently settled.
In USA, 42,000 rich migrants arrived, and Australia welcomed 22,000 super rich in the last decade.
Interestingly the rich Chinese opt for Hong Kong, Singapore and Canada to settle down.
Why Are They Leaving India?
This, seems the billion dollar question now. Why exactly are the super rich leaving their native country, the place where they earned their money in the first place?
Has the Government disappointed them? Has the business conduction rules and regulations straggled them? Do they find India under-developed and ill-equipped to handle their business acumen and style of living?
Please share your views on this mass exodus of rich Indians, by commenting right here.
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