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About 6,500 super-rich people are expected to leave India in 2023. According to a report by Henley & Partners, an international residence and citizenship advisory firm, the number of people with assets of more than $ 1 million (Rs 8.2 crore) is second only to China in India. Let us inform that last year in 2022, 7,500 millionaires had left India.
But why are so many rich going abroad? And where are they going?
The Indian Express quoted Sunita Singh-Dalal, partner, Private Wealth and Family Office, as saying that people are leaving the country because of India’s tax laws, strict remittance rules and other reasons.
Dominik Volek, the firm’s group head of private clients, told Business Standard there could be other reasons besides security, climate change and even government regulations on crypto.
Which countries will suffer how much
According to Indian Express, China will suffer a loss of 13,500 HNIs (High Networth Individuals) if millionaires go abroad from China. According to the report, "China continues to lose massive amounts of wealthy people.
Wealth growth has slowed down in the last few years. Due to this, rich people leaving the country will do more damage than before. Let us tell you that China’s Huawei company is banned in big markets like America, UK and Australia. This can have a profound effect.
UK is expected to lose 3,200 HNI and Russia 3,000 HNI.
Where will these Indians leave their country
Before Corona, America was the most favorite country of millionaires.
Forbes quoted the report as saying, "Singapore, Switzerland and the UAE have built their reputations for not only being a great place to live but also for conserving wealth. These countries have also established themselves as highly attractive business centres. Companies in these countries take advantage of favorable corporate tax rates.
According to a report in Business Today, countries that see an inflow of HNIs almost always allow citizenship through foreign direct investment (FDI).
Will this harm the country?
Andrew Amoiles, head of research at New World Wealth, told The Indian Express, ‘These migrations are not particularly worrying, as India produces far more new millionaires than it emigrates.
Rohit Bhardwaj, director (private clients), Henley & Partners India, told Business Standard that there are around 3,57,000 HNIs left in India. Bhardwaj said India shows a ‘strong wealth presence’.
According to the Ministry of Home Affairs (MHA) data presented in the Lok Sabha in December 2021, 8,81,254 Indians left the country for various reasons since 2015. This means that 345 people are leaving the country every day since last years.
These migrants also include HNIs, who have been renouncing Indian citizenship over the years due to various reasons.
According to the Global Wealth Migration Review, HNI Migration of people also leads to migration of wealth. Which is beneficial for the other country i.e. the country where people are settling.
If a country is losing a large number of HNIs due to migration, it may be due to serious problems in that country such as high crime rates, lack of business opportunities, and political instability.
According to data compiled by Global Wealth Migration Review, HNIs prefer to move to other countries:
- Safety for women and children
- Lifestyle: Better climate, less pollution, nature
- Better education for your children
- Work and better business opportunities (ease of doing business)
8.81 lakh Indians gave up citizenship in 7 years
In response to a question in the Lok Sabha in December 2021, Minister of State for Home Nityanand Rai said that between 1 January 2015 and 21 September 2021, 8,81,254 people had given up their Indian citizenship.
Educated people migrate the most from India
According to the Organization for Economic Co-operation and Development (OECD) report published in February 2020, India has the highest migration in the OECD region. Of which more than 3 million are tertiary-educated migrants.
OECD currently has 38 member countries, including Australia, Canada, France, Germany, the Netherlands, New Zealand, the United Kingdom, the United States.
According to the OECD report, in 2015-16 India ranked second in the list of main countries of origin for immigrants living in OECD countries. 48 crores from India Migrants are living here. more than one-quarter of which occurred during the last five years.
A report by the Center for Monitoring Indian Economy showed that unemployment levels tend to increase with education. From September-December 2018, the unemployment rate among those who completed graduation or higher education (graduation+) stood at 13.2 percent had reached In 2017, the figure was 12.7 percent.
According to Internationals, a Munich-based global social networking site for expatriate communities, "Indian expatriates are happy with their working hours, where new concepts of work attract these Indians. Better working hours and better work-life balance in Indian overseas are appealing to these Indian expatriates.
These countries are also facing the brunt of migration
Countries like United Kingdom, Russia and Brazil are also facing exodus of rich people. 3,200 in the United Kingdom, 3,000 in Russia and 1,200 in Brazil are expected to leave the country. There is going to be a large number of migration from Britain this year also, because last year 1,600 wealthy people migrated from there to some other country.
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