4,300 Indian millionaires will leave India in 2024 | Why are Rich Indians leaving?

StudyIQ IAS

22 Jun 202412:44

Summary

TLDRThe video script discusses the issue of wealthy Indians, specifically millionaires, leaving India for other countries. It mentions a report by Henley Private Wealth Migration, which predicts 4,300 millionaires will emigrate from India by 2024. The script explores reasons such as high taxes, pollution, and lack of infrastructure, and compares India's situation with countries like China and the UK. It also highlights the attractiveness of destinations like the UAE and the US for Indian millionaires due to factors like lower taxes and business-friendly environments. The speaker emphasizes the importance of improving the quality of life in India to retain its wealthy citizens.

Takeaways

🌍 Approximately 4,300 Indian millionaires will leave India in 2024.
💰 A millionaire is defined as someone with at least $1 million in liquid assets, equivalent to about 8.4 crores INR.
🏦 Many of these high-net-worth individuals have assets ranging from 40 to 70 crores INR.
📊 Henley Private Wealth Migration Report highlights that India ranks third in the number of millionaires leaving the country.
🇨🇳 China tops the list with 15,200 millionaires expected to leave, followed by the UK.
📉 The UK is experiencing a similar trend due to concerns over Brexit and increasing taxes.
🇮🇳 India's millionaires are leaving due to high tax rates, poor infrastructure, pollution, and heat waves.
🏠 Popular destinations for these migrating millionaires include the UAE, USA, and Singapore due to better quality of life and business-friendly environments.
🌿 Improving the quality of life in India, such as reducing pollution and enhancing infrastructure, could help retain these millionaires.
📅 The BRICS Games 2024 will be hosted by Russia.

Q & A

What is the minimum net worth for an individual to be considered a millionaire in India?
-To be considered a millionaire in India, an individual should have at least 1 million US dollars, which is approximately 8 crore 40 lakh INR.
Why is it concerning that 4,300 Indian millionaires are expected to leave India in 2024?
-It is concerning because India has a relatively smaller number of millionaires compared to countries like China and the UK. The consistent outflow of wealthy individuals could impact the economy negatively and indicates issues within the country.
What report provides the data on the migration of millionaires from various countries, including India?
-The data on the migration of millionaires is provided by the Henley Private Wealth Migration Report.
Which countries have the highest number of millionaires leaving in 2024, according to the report?
-The countries with the highest number of millionaires leaving in 2024 are China, the United Kingdom, and India.
Why are so many millionaires leaving China?
-Many millionaires are leaving China due to concerns about an impending war and stricter government regulations making it harder to exit the country.
What are the reasons for millionaires leaving the United Kingdom?
-Millionaires are leaving the UK primarily because of the economic uncertainties following Brexit, anticipated increases in taxes, and a general belief that the UK will no longer be a top economic power.
Why do Indian millionaires prefer countries like the UAE, USA, or Singapore for relocation?
-Indian millionaires prefer these countries due to lower taxes, better business environments, and higher quality of life, including factors like lower pollution and better infrastructure.
What are some of the key issues in India that drive millionaires to consider leaving the country?
-Key issues include high tax rates, air pollution, inadequate infrastructure, and concerns about the quality of life and safety.
What solutions are proposed to reduce the outflow of millionaires from India?
-Improving the quality of life in India, including reducing pollution, enhancing infrastructure, and ensuring better safety and cleanliness, are proposed solutions to retain millionaires.
What does the speaker suggest is the main attraction for Indian millionaires to the UAE?
-The main attractions are lower taxes, business-friendly environment, and proximity to India, making it easy to travel back and forth.

Outlines

00:00

🌍 Wealth Migration Trends and Factors

The script discusses the phenomenon of wealthy individuals, specifically millionaires, leaving India for other countries, with a focus on the year 2024. It mentions a report by Henley Private Wealth Migration, which indicates that around 4300 millionaires are expected to leave India. The speaker highlights the definition of a millionaire in this context as someone with at least 1 million US dollars in liquid assets, which would be approximately 80 to 84 crore Indian rupees when converted. The script also compares India's situation with other countries like China and the United Kingdom, which are also experiencing significant millionaire migration. Key factors driving this migration include political instability, economic concerns, and the desire for a better quality of life.

05:01

📉 Economic Challenges and the Impact on Millionaires

This paragraph delves into the reasons why millionaires are leaving the United Kingdom and India. It discusses the potential devaluation of the British pound and the economic uncertainty following Brexit, which could lead to more millionaires leaving the UK. For India, the script points out high tax rates, ranging from 30 to 35 percent, as a significant factor pushing the wealthy to consider other countries with more favorable tax environments. Additionally, it touches on issues like air pollution and the challenges of maintaining cleanliness in Indian cities, which contribute to the desire of some wealthy individuals to migrate for a better quality of life.

10:01

🏆 Host Country of BRICS Games 2024 and Study Abroad Opportunities

The script concludes with a question about the host country of the BRICS Games in 2024, inviting viewers to comment with their guesses among India, China, Brazil, or Russia. It also introduces a long-term UPSC preparation batch called Study IAS, designed for college students who wish to prepare for the UPSC exam over the next two to three years. The batch offers a comprehensive curriculum, live classes, one-on-one mentorship, and a preparatory program for the preliminary exams. The course also provides an option for students to study in Delhi under Study IAS guidance, covering accommodation and meal expenses. The video ends with a promotional note about the course's validity and a discount code for potential students.

Mindmap

Keywords

💡Henley Global Citizens Report

The Henley Global Citizens Report is a document that analyzes and provides data on the migration trends of millionaires worldwide. In the video, it is mentioned as the source of the statistic that 4300 millionaires will leave India in 2024. It is central to the theme of wealth migration and the reasons behind it.

💡Millionaire

A millionaire is an individual with a net worth of at least one million dollars. In the context of the video, it refers to high-net-worth individuals who have the financial means to migrate to other countries. The script discusses the reasons why such individuals might choose to leave India.

💡Wealth Migration

Wealth migration refers to the movement of affluent individuals from one country to another. The video's theme revolves around this concept, particularly focusing on why 4300 millionaires are expected to leave India and the implications for the country.

💡Quality of Life

Quality of life is a broad term that encompasses various factors affecting a person's well-being, including health, safety, and living standards. The video suggests that improving the quality of life in India could be a solution to prevent the migration of millionaires.

💡Taxation

Taxation in the video is discussed as a potential reason for wealth migration. High tax rates in India, ranging from 30 to 35 percent, may encourage wealthy individuals to seek more tax-friendly environments in other countries.

💡Infrastructure

Infrastructure refers to the fundamental physical and organizational structures needed for a country to function. The video implies that the lack of adequate infrastructure in India might be a factor contributing to the dissatisfaction of millionaires and their decision to migrate.

💡Air Pollution

Air pollution is a significant environmental issue mentioned in the video as a concern for wealthy individuals considering migration. The script suggests that the lack of clean air might prompt some millionaires to leave India in search of healthier living conditions.

💡Golden Visa

A golden visa is a residency permit granted by several countries to individuals making substantial investments in the country. The video mentions these as an attractive option for millionaires looking to migrate, offering them a path to permanent residency in return for investments.

💡BRICS Games

The BRICS Games is a sporting event featuring athletes from the BRICS countries. In the video, the host country for the 2024 BRICS Games is discussed, providing a cultural and sports-related context to the discussion on international relations and global events.

💡Study IAS

Study IAS is an educational platform mentioned in the video that offers long-term UPSC (Union Public Service Commission) preparation courses. It is used as an example of planning for the future, which contrasts with the immediate concerns of wealth migration discussed in the video.

💡Long-Term Planning

Long-term planning is the act of setting and working towards goals over an extended period. The video contrasts this concept with short-term thinking, using the Study IAS course as an example of how students can prepare for exams years in advance, unlike the immediate issue of millionaires leaving India.

Highlights

4300 millionaires are expected to leave India by 2024 according to the Henley Private Wealth Migration Report.

A millionaire is defined as an individual with at least 1 million USD in liquid assets, which would be approximately 8 to 9 crores in Indian Rupees.

The report reveals the top 10 countries from where millionaires are migrating, with China at the top with 152 millionaires leaving.

The United Kingdom is second on the list, which may come as a surprise to many, indicating a potential economic downturn due to Brexit.

India is consistently ranked in the top three countries for millionaire migration, raising concerns about the reasons behind this trend.

India has around 8 lakh millionaires, compared to China's 62 lakh, highlighting a significant difference in millionaire populations.

The report suggests that the increasing trend of millionaires leaving India could be due to high tax rates, ranging from 30 to 35 percent.

India's air pollution and lack of infrastructure are cited as significant issues that might be driving the wealthy to consider other countries.

Many millionaires are considering moving to countries offering golden visas, which provide permanent residency in exchange for investment.

The United Arab Emirates is a top choice for Indian millionaires due to its business-friendly environment, low taxes, and proximity to India.

The United States is also an attractive destination for Indian millionaires due to higher potential earnings and better quality of life.

The speaker emphasizes the need to improve the quality of life in India to retain its wealthy citizens and prevent capital flight.

The transcript mentions the importance of addressing issues such as air pollution, safety, and cleanliness to improve the living conditions in India.

A call to action is made for India to focus on improving life quality basics such as reducing pollution, enhancing safety, and increasing cleanliness.

The transcript discusses the potential impact of billions of dollars leaving India due to the migration of millionaires.

The speaker highlights the importance of long-term planning for students preparing for competitive exams like UPSC, offering a long-term batch for preparation.

Study IAS offers a long-term UPSC batch starting from June 24th, providing a comprehensive curriculum and support for the exam preparation.

The long-term batch includes live classes, one-to-one mentorship, prelims test series, and an answer writing program, all complimentary.

Study IAS provides accommodation and food expenses for students who choose to study in Delhi under their guidance.

The course is designed to support students from the preliminary exam to the interview stage of the UPSC exam.

A special discount is offered for the long-term course, with a maximum discount possible by using the code PD10.