At least 8,000 HNWIs expected to move out of India this year, says report

An 'HNWI' (High Net Worth Individual) is someone with liquid financial assets worth at least USD 1 million.

London:India faces the prospect of losing out on at least 8,000 HNWIs (High Net Worth Individuals) in 2022, up 14% from the pre-pandemic year of 2019, as per data from the latest Hanley Global Citizens Report. In 2019, the figure stood at 7,000. The firm, which tracks global wealth movement and investment migration trends, included India under its 'biggest losers' category, alongside others such as China, Hong Kong, and Brazil.

"India is expected to suffer a net loss of approximately 8,000 HNWIs in 2022, up 14% since 2019 when the net loss was 7,000. However, India produces far more new millionaires than it loses to migration every year" the release reads. An 'HNWI' is someone with liquid financial assets worth at least USD 1 million. The Q2 report, published on Monday, also significantly displays a large 10,000 HNWI outflow expected in China, which in the case of Brazil is estimated to be 2,500 - a sharp 79% hike compared to 2019.

In Hong Kong, or SAR (Special Administrative Region) China, the "departures continue albeit at a slower pace" as the report projects the millionaire outflow to be 3,000 this year, which is a 29% drop compared to 2019. Meanwhile, the mainland Chinese situation is further explained by the report as something that can cause more damage than expected, as "wealth growth in the country has been slowing over the past few years. As such, recent outflows of HNWIs can be more damaging than in the past".

The Hanley report lists Israel, Australia, New Zealand, and Singapore among the 'big winners'. While Australia is predicted to have an inflow of 3,5000 - the second-highest globally - they are highest in Israel, with a forecasted figure of 2,500 for 2022, a huge 79% increase since 2019. The release also notes that UK and USA, traditionally considered to be wealth hubs, are 'falling'.

"The UK, once touted as the world's financial center, continues to see a steady loss of millionaires, with net outflows of 1,500 predicted for 2022." Significantly, it also brings in political change in the country as a controller. "This trend began five years ago when the BREXIT vote and rising taxes saw more HNWIs than entering for the first time," it says.

The USA, on the other hand, despite scoring inflows, has been dealt a tumultuous drop from previous numbers. "America is notably less popular among migrating millionaires today than pre-COVID ... This country still attracts more HNWI than it loses to emigration, with a net inflow of 1,500 projected for 2022, although this is a staggering 86% drop from 2019 levels ..." the release reads.