Here’s why ultra-rich Indians are leaving the country

While migrating for work or study is very common, some of those who migrate are also high net worth individuals (HNI). Yes, wealthy or super wealthy Indians are also choosing to leave the country.

Around 8,000 HNIs are expected to leave India this year, according to a research report by UK-based global citizenship and residency adviser Henley & Partners (H&P).

Source: Henry & Partners

India has the third largest number of HNIs expected to leave the country this year, behind Russia (15,000) and China (10,000). The UAE is expected to attract the most HNIs this year with 4,000, Australia with 3,500 and Singapore with 2,800.

Net HNWI outflow expected in 2022

Source: Henry & Partners. *These are his full-year 2022 forecast numbers. Based on year-to-date wealth movements. Numbers are rounded to the nearest 100.

But what is the reason these super wealthy Indians are leaving the country?

The biggest reason for HNI to leave India is the improvement of living standards. Other reasons, experts say, include improved educational and health facilities, political dynamics, improved work-life balance and eventual citizenship opportunities.

Kritesh Abhishek, Founder and CEO of Trade Brains and FinGrad, said: LinkedIn post.

Germany-based global marketing and sales analyst Manoj Dhulipati explains why:

1) Better standard of living.

2) Escape from many social stigmas.

3) Better work-life balance.

4) Opportunity to earn and invest in Rupees in a rising currency.

5) Better travel feasibility and eventual citizenship opportunities.

Home Minister Nityanand Rai told parliament last year that 1,33,83,718 Indians live abroad.

According to the Global Wealth Migration Review report, around 5,000 billionaires left India in 2020, representing 2% of the total number of HNIs. His 2018 separate report by Morgan Stanley said that 23,000 Indian billionaires have left India since 2014.

“Usually, HNWI (or HNI) outflows are associated with finding better business opportunities abroad, and security concerns, taxation and living standards are the main factors,” said wealth intelligence firm. Andrew Amoils, head of research at New World Wealth, told CNBCTV18. com.

However, according to Amoils, many wealthy people are likely to return to India if living standards improve.

Strict tax rules and the desire for strong passports are among the main reasons for Indians to migrate, according to Bijal Ajinky, partner in direct tax, private client and investment fund practice at Khaitan and Co.

“The attraction of higher standards of living, including better educational and medical facilities for families, will also continue to be an important driver, and perhaps even more so with the impact of Covid,” he said. Times of India.

While many wealthy people are leaving India, the country’s wealthy population is also booming. H&P reports that he has seen a 74% increase in the wealthy over the past decade, with India second only to China.

Growth rate of HNWIs in USD terms

Source: H&P. *HNWIs are defined as individuals with a net worth of her US$1 million or more, so all growth rates are substantially in US dollars.

Not only this, the number of HNIs in India is likely to grow at the highest 80% by 2031, followed by Australia (60%) and China (50%).