New Delhi: According to a recent report by international investment migration advisory firm Henley & Partners, around 4,300 millionaires are expected to leave India this year, with many choosing the UAE as their destination. This follows a similar trend from the previous year when 5,100 Indian millionaires moved abroad.
India, despite being the world’s fastest-growing economy, is projected to be the third-highest in millionaire migrations, following China and the UK. Interestingly, although India has surpassed China as the most populous nation, its millionaire exodus is less than 30% of China’s. The report highlights that many of the millionaires leaving India retain their business interests and second homes in the country, suggesting ongoing robust economic ties despite their relocation.
While the departure of thousands of millionaires annually might seem concerning, the impact is mitigated by India’s ability to generate new wealth. Over the past decade, India has seen an 85% growth in wealth, creating far more new high-net-worth individuals than it loses to emigration. This continuous wealth generation underscores the country’s dynamic and resilient economic landscape.
The migration of wealthy individuals from India is part of a broader trend where high-net-worth individuals seek destinations that offer better personal and financial growth opportunities. The UAE stands out as a preferred choice due to its attractive business environment, favorable tax policies, and high quality of life. The UAE’s strategic location, excellent infrastructure, and pro-business regulations make it an ideal hub for global business operations, drawing in millionaires from around the world, including India.
Indian private banks and wealth management platforms are expanding their operations into the UAE to cater to this migrating clientele. Firms such as Nuvama Private and LGT Wealth Management are at the forefront of assisting Indian clients with global diversification and expansion. These institutions provide seamless investment advisory services, helping clients navigate international markets and manage their wealth effectively.
Kotak Mahindra Bank and 360 ONE Wealth are also establishing their presence in the UAE to ensure comprehensive wealth management services for Indian families. By doing so, they aim to retain their competitive edge and prevent the loss of clients to other international wealth management firms. These banks are joining the dots between India and the UAE, ensuring that their clients have access to top-notch financial services no matter where they reside.
The ongoing trend of millionaire migration reflects the interconnected nature of the global economy. High-net-worth individuals are increasingly looking for opportunities that allow them to optimize their wealth, enhance their lifestyle, and secure their financial future. The UAE, with its robust economic framework and conducive living conditions, continues to attract these global citizens, reinforcing its status as a leading destination for expatriates.
In summary, while India faces a notable outflow of millionaires each year, the country’s robust economic growth and continuous wealth generation mitigate potential concerns. The strategic response from Indian financial institutions, expanding their services to key destinations like the UAE, ensures that they remain integral to their clients’ wealth management strategies, regardless of their physical location. This trend underscores the importance of global connectivity and strategic financial planning in today’s dynamic economic environment.