India is likely to witness a net ouflow of 6,500 high-net-worth individuals (HNWIs) in 2023, according to the Henley Private Wealth Migration Report. The report, which tracks global wealth and investment migration trends, indicates that India is the second-largest country in HNWI outflow, following China.
"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," said Sunita Singh-Dalal, Partner of Private Wealth & Family Offices at Hourani.
Dalal added that Dubai and Singapore remain preferred destinations for wealthy Indian families.
However, the report said despite the outflow, India's capacity to generate new millionaires and its projected wealth growth makes the situation less concerning.
The projected net outflow from India in 2023 is a slight decrease from the previous year's figure of 7,500 millionaires.
China leads the list with a net loss of 13,500 HNWIs. Following India, the United Kingdom ranks third, with 3,200 individuals leaving the country, while Russia holds the fourth position with 3,000 departures.
Despite the outflow, the report projects a strong growth trajectory for India's high-net-worth individual population. The report suggests an 80 per cent increase in HNIs by 2031, positioning India as one of the world's fastest-growing wealth markets.
The growth is expected to be fueled by the country's thriving financial services, healthcare, and technology sectors.
India will also witness a trend of affluent individuals returning to the country as the standard of living continues to improve. The report anticipates a significant influx of wealthy individuals moving back to India in greater numbers.