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6,500 HNWIs Expected to Leave India by 2023: Report

This is lower than the previous year’s figure of 7,500, but still places India as the second-largest source of HNWI outflow in the world, after China.




A new report predicts that 6,500 HNWI will leave India by 2023, citing concerns over economic instability and political uncertainty.

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India is facing the challenge of retaining its wealthy citizens, as more and more high-net-worth individuals (HNWIs) are opting to migrate to other countries in search of better opportunities and quality of life. According to the Henley Private Wealth Migration Report 2023, which tracks the global trends of HNWI migration, India is projected to experience a net outflow of 6,500 HNWIs in 2023. This is lower than the previous year’s figure of 7,500, but still places India as the second-largest source of HNWI outflow in the world, after China.

Understanding High-Net-Worth Individuals (HNWI):

The report defines HNWIs as those who have an investable wealth of $1 million or more. It estimates that the global HNWI population will grow by 8.5% in 2023, reaching a total of 22.5 million. The main drivers of this growth are the strong economic performance and wealth creation in emerging markets, such as India and China. However, these countries are also facing the challenge of retaining their wealthy citizens, who are increasingly looking for alternative destinations that offer more security, stability, freedom, and opportunities.

The top three destinations for HNWI migration in 2023 are expected to be the United States, Canada, and the United Kingdom. These countries are attractive for their robust economies, high standards of living, quality education and healthcare systems, and favorable tax regimes. They also offer various programs and incentives for attracting and retaining HNWIs, such as citizenship by investment, residency by investment, and golden visa schemes.

Also Read: RBI Announces Monetary Policy 2023

Factors Influencing the Departure of NHWIs:

Several factors contribute to the decision of HNWIs to leave their home country. In the case of India, there are a few key elements that have been identified as driving forces behind this anticipated exodus:

  • a. Economic Environment: HNWIs seek stable economic conditions, favorable business opportunities, and robust investment climates. Factors such as high taxes, complex regulatory frameworks, and bureaucracy can discourage entrepreneurial spirit and hinder wealth accumulation.
  • b. Taxation: The tax structure and policies in a country significantly impact HNWIs. India has witnessed frequent changes in tax regulations, including the introduction of the Goods and Services Tax (GST) and the increased focus on tax compliance. Such developments may create uncertainty and prompt HNWIs to explore more tax-friendly destinations.
  • c. Business Opportunities: HNWIs often seek countries with a vibrant and growing business environment, which offers opportunities for wealth creation and expansion. The ease of doing business, access to capital, and infrastructure are critical factors that determine the attractiveness of a nation for HNWIs.
  • d. Lifestyle and Quality of Life: The overall lifestyle and quality of life play a pivotal role in HNWIs’ decisions to relocate. Factors like security, healthcare facilities, education, and cultural amenities are essential considerations for individuals with significant wealth and their families.

HNWIs Impact on India’s Economy:

The potential departure of 6,500 HNWIs from India could have significant repercussions on the country’s economy. HNWIs are major contributors to economic growth, job creation, and investment. Their departure could lead to a loss of entrepreneurial talent, reduced investment inflows, and a decline in economic activity.

  • Brain Drain: The departure of skilled and wealthy individuals represents a “brain drain” for India. This loss of talent and expertise could impede innovation and hinder the growth of domestic industries.
  • Investment and Entrepreneurship: HNWIs are often key investors and job creators. Their departure may result in decreased investment in domestic businesses, stifling entrepreneurial growth and employment opportunities.
  • Tax Revenues: HNWIs make substantial contributions to tax revenues. Their departure could lead to a decline in tax collections, impacting government finances and public services.

Addressing the Concerns:

To mitigate the potential loss of HNWIs, India must address the underlying concerns that drive its decision to leave. The following measures could help retain and attract high-net-worth individuals:

  • Tax Reforms: Streamlining tax regulations, reducing complexities, and providing a stable tax environment can foster confidence and encourage HNWIs to stay and invest in the country.
  • Business-Friendly Policies: Implementing business-friendly policies, improving ease of doing business rankings, and ensuring a favorable investment climate will attract HNWIs looking for lucrative business opportunities.
  • Infrastructure Development: Enhancing infrastructure, including transportation, healthcare facilities, and educational institutions, contributes to a better quality of life and attracts HNWIs seeking an improved lifestyle.
  • Skill Development and Innovation: Emphasizing skill development, research and development, and fostering innovation can help retain talent and prevent brain drain.


The anticipated departure of 6,500 high-net-worth individuals from India by 2023 underscores the importance of addressing the concerns driving their decision to relocate. India’s economy relies on the contributions of HNWIs, and their departure could have far-reaching consequences. By implementing effective reforms, offering a favorable business environment, and enhancing the overall quality of life, India can strive to retain and attract high-net-worth individuals, thereby supporting economic growth and development for the nation.

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