BENGALURU: India could see a net exodus of 6,500 high-net-worth individuals (HNWIs) in 2023, says a report by Henley & Partners, a London-based investment migration advisory firm. The report said 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. It is said Dubai and Singapore remain preferred destinations for wealthy Indian families. About 357,000 HNWIs are residing in the country. The report says India will be the second-biggest loser of millionaires globally after China, which will see net outflow of 13,500 millionaires. With 3,200 HNWIs, the UK will be the third-biggest loser of millionaires.
Though the second-biggest loser globally, India’s net exit numbers are predicted to drop to 6,500 in 2023 as against 7,500 in 2022. Andrew Amoils, head of research at New World Wealth, says “these outflows are not concerning as India produces far more new millionaires than it loses to migration.”
Henley & Partners received the highest number of investment migration program enquiries on record in the first quarter of 2023 — an increase of 36% as against the previous quarter, and 47% higher than the same period in 2022.
The top two nationalities currently driving demand are Indians and Americans, with Brits and South Africans remaining in the Top 10 as they have done for the last five years. Dominic Volek, Group Head of Private Clients at Henley & Partners, says historically, many wealthy individuals acquired residence rights or citizenship without moving to those countries. “Recent and persistent turmoil has caused a shift — more investors are considering relocating their families for a range of reasons, from safety and security, to education and healthcare, to climate change resilience and even crypto-friendliness.”
“Nine of top 10 countries for forecast net HNWI inflows in 2023 host formal residence by investment programs that encourage foreign direct investment in return for the right to reside, which can also lead to citizenship in some cases.”