In a significant demographic shift, India has surpassed China to become the world’s most populous nation. However, a recent report by Henley and Partners reveals that the exodus of millionaires from India remains less than 30 percent of that from China.
The report forecasts that approximately 4,300 millionaires will leave India this year, with a substantial number heading to the UAE. This follows the previous year’s trend, where 5,100 Indian millionaires relocated abroad.
The report highlights that even though India loses thousands of millionaires annually, mainly to the UAE, the country’s substantial 85 percent wealth growth over the past decade eases concerns about these outflows. The country continues to produce high-net-worth individuals at a faster rate than they emigrate.
India, now the world’s fastest-growing economy, is anticipated to rank third globally for millionaire migrations, trailing only China and the UK.
UAE: A Magnet for Millionaires
The UAE has emerged as the top destination for migrating millionaires, thanks to its zero income tax, golden visas, luxurious lifestyle, and strategic location. The report projects a record net inflow of 6,700 millionaires to the UAE this year alone.
According to the report, the UAE is poised to attract nearly twice as many millionaires as the US in 2024, driven by consistent high inflows from India, the broader Middle East, Russia, and Africa, alongside anticipated increases from Britain and Europe.
Strategic Expansion by Indian Banks
In response to this trend, Indian private banks and wealth management platforms are rapidly expanding their presence in the UAE. These firms aim to provide seamless investment advisory services to their Indian clients, catering to the financial needs of expatriate families.
As India adjusts to its new status as the world’s most populous nation, the dynamics of wealth and migration continue to evolve, shaping the global economic landscape.
