CONTEXT

• India’s economy is rapidly expanding, fostering wealth creation across sectors.
• Globalisation and liberalised capital movement have enabled Indian High Net Worth Individuals (HNWIs) to explore offshore assets.
• Offshore investment is emerging as a financial strategy for diversification, wealth protection, and tax optimisation.

CONCEPT

• HNWIs (High Net Worth Individuals): Persons with liquid assets above $1 million.
• Offshore Assets: Investments held outside one’s home country — includes real estate, equities, bank accounts, insurance, and jewellery.
• Key Drivers for Offshore Investment:
  •  Better investment opportunities (55%)
  • Advanced wealth management services (65%)
  •  Improved market access (54%)
  • Tax efficiency & economic-political stability abroad (49%)
• Implications:
  • Reflects maturing financial literacy among India’s wealthy.
  • Highlights need for robust domestic wealth management reforms to retain capital.
  • Raises issues around capital flight, regulatory oversight, and global tax compliance.

CURRENT DATA (2025 REPORT HIGHLIGHTS)

• Capgemini’s World Wealth Report 2025 reveals:
  • 98% of next-gen Indian HNWIs plan to increase offshore assets by over 10% by 2030.
  • Motivated by better financial infrastructure abroad.
• Growth in HNWIs (2024):
  • India saw a 5.6% increase, adding 20,000 millionaires.
  • Total HNWIs in India by end-2024: 3,33,340.
  • Japan showed similar growth, adding 2,10,000 HNWIs.
• Significance for India:
  • Indicates wealth concentration and intergenerational transfer trends.
  • Suggests confidence in global investment avenues amid domestic uncertainties.
  • May affect India’s forex reserves, tax revenue, and wealth distribution patterns.