India has the second highest millionaire outflow in the world. A new report by global wealth sector information consulting services firm New World Wealth reveals that India has seen its high net worth individuals leave the country in droves in the last 14 years, with as many as 61,000 millionaires shifting base over high taxes and security concerns as well as better education opportunities for their children.
India is second only to China which witnessed 91,000 millionaires move out in the same period. Earlier this year, another wealth report by Knight Frank revealed that one out every four millionaires are bidding goodbye to India.
“In the last 10 years, 27 percent, or 43,400 millionaires among the 160,600 high net worth individuals (HNWIs) in India, have left the country for better employment opportunities in the US, UK and Australia,” noted the report, revealing a serious problem of ‘wealth flight’.
The rise of the Indian millionaires has beenÂ impressive with the number of rich Indians rising 27 percent in the last year from 196,000 to 250,000. As it turns out, however, that kind of wealth creation has not been sufficient to stem the exodus. The top five destinations for Indian millionaires are the UK, US, Australia, UAE, and Singapore, according to Andrew Amoils, head of research, New World Wealth.
The major reasons to immigrate include turmoil in a home country, security concerns and a pursuit of better education prospects for their children. But the biggest draws have been a better standard of living and tax savings. “The UK, Australia, and the USA appeal to people due to language, a standard of living, schooling and security. The UAE and Singapore also have a low tax structure,” says Amoils .