Despite the government’s thrust on improving ease of doing business, India saw the largest migration of its high net worth individuals in 2018 after China and Russian Federation.
Despite the government’s thrust on improving ease of doing business, India saw the largest migration of its high net worth individuals in 2018 after China and Russian Federation. The large exodus of HNIs can be attributed to better standard of living, safety, better work, business and education opportunities in other countries, according to a recent report. Notably, India’s ranking in terms of ease of doing business had jumped to 77 from 100 last year but it seems to have failed in creating a suitable environment for millionaires to stay back in the country which claims to be the fastest growing economy in the world.
The total number of HNIs which left India in 2018 represent 2 percent of the total HNIs in the country. As per the report, 5,000 HNIs left the country in 2018. However, the report also said that the outflow of HNIs from China and India is not a concern as both the countries are still producing far more HNIs than they are losing. With the improvement in the standard of living in these two countries, several wealthy people will move back.
Last year, in an interview with Financial Express Online, Ruchir Sharma, Chief Global Strategist, Morgan Stanley Investment Management, had cited the reasons of anti corruption and regulatory crackdown in India behind the leaving of millionaires. He had said that the speed at which millionaires were leaving India might affect the domestic markets, and might not bode well for India going forward.
Australia, the US and Canada are the top three countries which saw the largest inflow of HNIs in 2018 on account of safety, appeal of bringing up children and better education in terms of schools and universities, climate, healthcare and tax system among others.
Australia has beaten out the world’s largest economy US for the fourth consecutive year in attracting the HNIs. Sydney, Melbourne and the Gold Coast are among the most popular cities to move in for HNIs in Australia. In the US, the most preferred places for HNIs are New York City, Los Angeles, Miami and the San Francisco Bay area. After Australia and the US, Canada is the topmost country which saw the largest inflow of HNIs in 2018. Dubai in UAE is also one of the most sought after places for the millionaires to move in, as per the report.