According to the Henley Global Citizens Report, approximately 8,000 high-net-worth individuals or HNIs are expected to leave India in 2022.
The report tracks migration trends across the world.
Other Countries Being Deserted
This figure has risen by 14% since 2019 when the net loss was 7,000.
Besides India, millionaires could also exit from Russia, China, Hong Kong and Ukraine.
The report also noted that India produces far more new millionaires than it loses to migration each year.
Rapid Pace Of Producing Millionaires
Andrew Amoils, head of research at New World Wealth, a global wealth intelligence firm, said that he expects HNIs ro return to India once the standard of living improves.
His firm also expects the HNI population to rise by 80% by 2031, which will make India one of the world’s fastest-growing wealth markets during this period.
This will be driven by “especially strong” growth in the local financial services, healthcare and technology sectors.
In comparison, the number of US dollar millionaires will only grow by 20% in the US and by 10% in France, Germany, Italy, and the UK.
Countries Expecting Millionaire Immigrants
The UAE is expected to be the top destination for millionaires, followed by Australia and Singapore with an expected net inflow of 2,800 millionaires in 2022.
Israel is ranked fourth on the list, with a score of 2500, followed by Switzerland with a score of 2200, and the United States with a score of 1500.
Places like Dubai and Singapore continue to attract Indian millionaires since they are physically more accessible from India and are tax friendly.
This is also a better option for them compared to the US where immigration and tax rules are becoming tougher.
Settling In Better/More Progressive Countries
The migration from India is fuelled by stringent tax rules and a desire for powerful passports.
In 2020 and 2021, India introduced stringent tax residency rules that gave no relief in individual taxation rates for HNIs, prompting the affected individuals to start packing their bags.
Another consistent primary motivator for Indians looking for alternative residence and citizenship is the desire for visa-free travel.
These migrators also want to go someplace where there is a higher standard of living, including better educational and health facilities for the family.
The younger of the lot, meanwhile, are looking for global business and investment opportunities which motivates them to leave for more lucrative countries.
These young entrepreneurs wish to diversify a portion of their wealth in countries that offer incentives and high tax efficiencies.
In December, Minister of State for Home Affairs Nityanand Rai had said that 8,81,254 people had forfeited their Indian citizenship in the past seven years till September 30.
In November, according to the data available with the Ministry of External Affairs, 1,33,83,718 Indians are now living in foreign countries.
In 2020 alone nearly 5,000 Indian millionaires, or 2% of the total number of HNIs left the country.
A 2018 report by Morgan Stanley found that 23,000 Indian millionaires had left the country since 2014.