A recent report by Henley & Partners, an international investment migration advisory firm, reveals that approximately 4,300 Indian millionaires are expected to emigrate this year, with a significant number opting for the UAE.
This follows last year's figure of 5,100 Indian millionaires relocating abroad.
India, the world's fastest-growing economy, is projected to rank third globally for millionaire migrations, following China and the UK. Despite surpassing China as the most populous country, India's net millionaire exodus remains less than 30% of China's.
"While India loses thousands of millionaires each year, many migrating to the UAE, concerns over these outflows may be mitigated by the country's wealth growth of 85% over the past decade, continuing to produce far more new high-net-worth individuals than it loses to emigration," the report states.
The report also notes that many of these departing millionaires maintain business interests and second homes in India, indicating ongoing economic ties.
Indian private banks and wealth management platforms are increasingly establishing a presence in the UAE to provide seamless investment advisory services to their clients. Notable examples include Nuvama Private and LGT Wealth Management, which are known for supporting Indian clients with global diversification and expansion.
Other banks are also enhancing their presence in the UAE to offer competitive wealth management services for Indian families. "Kotak Mahindra Bank and 360 ONE Wealth are providing Indian families with on-the-ground wealth management services in the UAE, ensuring they stay competitive," according to the Henley report.
In 2024, around 128,000 millionaires worldwide are expected to relocate, with the UAE and the USA being the top destinations.
Migrating millionaires significantly boost foreign exchange reserves by transferring substantial assets. Their investments also stimulate local stock markets through equity placements. Additionally, businesses established by these millionaires often create numerous high-paying jobs, benefiting the middle class. Companies like Microsoft, Apple, and Tesla in the USA exemplify this effect.
High-net-worth families choose to relocate for various reasons, including safety, financial considerations, tax benefits, retirement prospects, business opportunities, favorable lifestyles, educational opportunities for children, healthcare systems, and overall quality of life.