A recent report by Global Wealth Migration Review (GWMR) suggests that Indians who have the means to quit the country are doing so in large numbers. The report indicates that a large number of Indian high-net-worth individuals (HNWIs) moved to USA, UAE, Canada, Australia and New Zealand.
According to the GWMR report, India saw the third highest outflow of wealthy individuals last year. Nearly 5,000 millionaires, or high-net-worth individuals (HNWIs), left the country, which is 2 per cent of the total number of HNWIs in India.
The UK for the last three decades was ranked among the countries with the highest number of inflow of wealthy individuals but the trend reversed sharply in the last two years, thanks to Brexit.
China topped the list, as its economy is starting to show the impact of the trade battle with the US. Russia occupied the second spot, ahead of India, as the Russian economy grapples with the impact of multiple embargoes.
The report forecasts a growth in large number of entrepreneurs in India attributable to, good educational system and English speaking workforce. A strong growth forecast in the local financial services, IT, business process outsourcing, real estate, healthcare and media sectors (10 year wealth growth forecast: 200%).
The report also pointed out another critical problem with the Indian economy of the degree of inequality growing at an alarming rate. The HNWIs hold nearly half the total wealth in the country.
The report highlights Pune, Hyderabad, Bangalore, Mumbai, Delhi, Kolkata, among global cities to look out for in the next decade. However, the report also went on to mention that the outflow of HNWIs from China and India is not “particularly concerning”
The outflows of HNWIs from these countries are not particularly concerning as they are still producing far more new HNWIs than they are losing. Also, once the standard of living in these countries improves, we expect several wealthy people to move back.