India is projected to witness a net outflow of 6,500 high-net-worth individuals (HNWIs) in 2023, according to theHenley Private Wealth Migration Report 2023which tracks wealth and investment migration trends worldwide. This places India as the second-largest country in terms of HNWI outflow globally, following China (net loss of 13,500).
The current projection indicates that the anticipated HNWI flight is slightly lower than the previous year’s net outflow of 7,500 millionaires. The report, released On Tuesday by Henley & Partners ranks UK and Russia, following its invasion of Ukraine, in third and place respectively.
This growth will mainly be fuelled by the thriving financial services, healthcare, and technology sectors within the country. Interestingly, the firm has observed a notable trend of affluent individuals returning to India, and as the standard of living continues to improve, it anticipates a significant influx of wealthy individuals moving back to India in greater numbers.
Dominic Volek, Group Head of Private Clients at Henley & Partners, noted that the 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,” he said. Other reasons for the investment migration from India include prohibitive tax legislation coupled with convoluted, complex rules relating to outbound remittances that are open to misinterpretation and abuse. Dubai and Singapore remain preferred destinations for wealthy Indian families