New Delhi: It is not new for rich people to leave the country and settle abroad. But despite India’s rapid growth amid fears of a global recession, it’s a shocking decision for people to move from here to other countries. Not only this, India ranks second in the world in terms of people leaving India to settle in other countries. According to Henley Private Wealth Migration Report 2023, 6500 High Net Worth Individuals i.e. HNIs may leave the country in 2023. Although this number is less than last year, 7.5 thousand emirs left India last year.
A report by Henley, which tracks wealth and investment migration, says China is the most emigrating country to make a home abroad, with an estimated 13,500 wealthy exodus this year. Britain is number three on the list, from where 3200 millionaires are likely to leave the country this year. On the other hand, 3,000 high net worth individuals are expected to move from Russia to other countries and is number four on this list.
However, most experts believe that millionaires leaving the country is not a major concern. The argument behind this is that by 2031, the millionaire population could increase to around 80 percent. During this time India will be one of the fastest growing wealth markets in the world. Along with this, the highest number of millionaires will emerge from the financial services, technology and pharma sectors in the country. In such a situation, reducing this number in 2022 is a big relief news from India’s point of view.
However, the question still arises as to why rich people leave their country. In fact, thousands of rich people leave the country every year due to complications in tax related rules in India. Places like Dubai and Singapore are the most popular among the rich around the world because the rich prefer to move to countries where tax rules are flexible.
Social media users have been seen lambasting the finance ministry over the complexity in the tax rules. Former board member of veteran IT company Infosys TV Mohandas Pai also tweeted. He said that the Finance Ministry has made life difficult for HNIs. He said that tax rules should be simplified.