The article first appeared in Economic Times on Mar 26, 2025.
In recent years, India has witnessed a significant number of ultra-high-net-worth individuals (UHNIs) considering relocation. A survey conducted by Kotak Private, in collaboration with consultancy EY, highlights that at least 22% of India’s super-rich are contemplating leaving the country. The primary reasons include improved living conditions, a better standard of life abroad, and a more favorable business environment in other nations. With 2.83 lakh individuals classified as UHNIs in 2023, each possessing a net worth of over Rs 25 crore, their collective wealth was valued at Rs 2.83 lakh crore. The survey anticipates that this number will increase to 4.3 lakh individuals with a combined wealth of Rs 359 lakh crore by 2028.
Despite these numbers, Kotak Mahindra Bank’s president, Gautami Gavankar, reassured that this migration should not be perceived as capital flight. Strict regulations ensure that even when individuals change residency, their wealth does not entirely leave the country.
Interestingly, the trend of wealthy individuals leaving India seems to be slowing down. According to a 2023 report by Henley & Partners, while 4,300 high-net-worth individuals (HNWIs) were projected to leave India in 2024, this figure marks a decline compared to previous years. The country had seen a net outflow of 5,100 HNWIs in 2023 and 7,500 in 2022. The decreasing numbers suggest a potential improvement in the factors that initially drove the affluent to migrate. A slowdown in millionaire migration could indicate strengthening economic stability and a better domestic environment, reassuring investors and business leaders alike.
The motivations behind wealthy individuals seeking residency elsewhere have evolved. Historically, lower taxes, economic opportunities, and political stability were the primary incentives. However, the latest Henley & Partners report highlights that quality of life, educational opportunities for children, and climate resilience are now equally crucial considerations. Additionally, safeguarding wealth for future generations has become a growing concern among India’s affluent class.
While India continues to see an outflow of wealthy individuals, the trend suggests that the situation may be stabilizing. Addressing the key concerns of these high-net-worth individuals, such as business regulations, quality of life, and long-term financial security, could further slow down this migration. Strengthening domestic economic conditions and providing incentives for wealth retention within the country will be vital in ensuring that India remains an attractive destination for its wealthiest citizens…
Read more at Economic Times
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