Over 6,500 high net worth individuals to leave India in 2023: Report

China is projected to lose 13,500 HNIs this year, and India will follow. According to the forecast, there will be fewer HNIs departing than the 7,500 millionaires who left the previous year, reported Live Mint.

As perthe report, the outflow is not especially alarming because India can produce new millionaires. The analysis projects that by 2031, there will be a spectacular 80 per centrise in the population of high-net-worth individuals, making India one of the world's wealth markets with the quickest growth rates during this time. Financial services, healthcare, and other sectors will be particularly important drivers of this development.

As the standard of living rises, it has also noticeda trend of wealthy people returning to India, and it expects a significant number of these people to return in increasing numbers.

The UK will have 3,200 millionaires, while Russia will have 3,000 HNIs, according to a study citing New World Money, a company that has been monitoring patterns in the movement of money throughout the world for more than ten years.

Investors thinking about relocating families?

Dominic Volek, the company's group head for private clients, claimed that the recent and ongoing unrest has resulted in a change where more investors are thinking about relocating their families for a variety of reasons, including safety and security, education and healthcare, climate change resilience, and even crypto-friendliness.

“Nine of the top 10 countries for forecast net HNI inflows in 2023 host formal residence by investment programmes that encourage foreign direct investment in return for the right to reside, which can also lead to citizenship in some cases. Investors see the clear value of diversifying their domicile portfolios as the ultimate hedge against both regional and global volatility, now and in the future," Volek told Live mint.

Sunita Singh-Dalal, partner, private wealth and family offices at Hourani told Live Mint, “Prohibitive tax legislation coupled with convoluted, complex rules relating to outbound remittances that are open to misinterpretation and abuse, are but a few issues that have triggered the trend of investment migration from India. Dubai and Singapore remain preferred destinations for wealthy Indian families. The former, also known as the '5th City of India',is particularly attractive for its government-administered global investor 'Golden Visa'programme, favourable tax environment, robust business ecosystem and safe, peaceful environment."

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Additionally,Rohit Bhardwaj, director, of private clients at the company’s India office, told Live Mint,“With a current count of approximately 3.5 lakh high-net-worth individuals (HNIs) residing in the country, India showcases a robust wealth presence. Asia is home to various wealth hubs and just this year, the number of enquiries received from South Asia in the first four months of 2023 already accounted for 72.2 per centof the total number of enquiries recorded the previous year which in itself was a record year. We project this upward trajectory to continue this year, with Indian investors voicing the demand for alternative residences and additional citizenships."

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