6,500 Super Rich Indians Do Not Want To Stay In India, And Will Leave India In 2023; Despite India ‘Shining’ There Are Pertinent Reasons Why Indians Don’t Want To Stay In The Country
India, according to all statistics, rating bodies, experts, analysts, and even by economic barometers such as GDP growth, business forecasts, foreign investments, etc., all show a positive trajection for India, yet the fact that despite its burgeoning economy, a substantial population of high-net-worth individuals (HNIs) and Super-Rich Indians are seeking new horizons beyond India. According to the Henley Private Health Migration Report 2023, approximately 6,500 Indian millionaires and their families are expected to join the ranks of global citizens, marking a continuation of this pattern. But why are they leaving? What are the reasons compelling them to go despite the positivity surrounding India's growth? Is it Unresolved Issues? Does India Fall Short on Quality of Life? Is the Taxation System Deterring Investment? What About Social Stigmas and Bias? And what about those who do not have the resources to leave?
Super Rich Indians Dont Want To Stay In India
Henley Private Health Migration Report 2023 says around 6,500 Indian millionaires and their families are expected to leave the country.
Now, it is understandable that in a world where individuals are increasingly globalized and connected, it is not surprising to witness the migration of high-net-worth individuals seeking greener pastures, but there are some questions that beg to be answered as we move further into the article.
Topping The List
While it is unsurprising that China tops the list (slowing economy, increasing unemployment rate, strict government rules) with an estimated loss of 13,500 HNIs; however, the fact that India follows closely behind in second place is a matter of introspection.
It’s noteworthy that this year’s figure is slightly lower than those in 2022, when 7,500 HNIs chose to explore international opportunities; also, the HNI exodus is not unique to India; countries like the United Kingdom, Russia, and Brazil are also witnessing significant numbers of affluent citizens leaving for various reasons.
According to the report, when it comes to preferred investment destinations for wealthy Indians, it is Australia, the United States, and Switzerland take the lead.
The above countries win hands down since these countries are known for their stable economies, strong financial systems, and attractive investment opportunities.
Dubai and Singapore, Magnets for Wealthy Indians
Other destinations that have come out on top among the various immigration destinations are Dubai and Singapore, which stand out as magnets for wealthy Indians.
Dubai, in particular, has become increasingly attractive due to its ‘Golden Visa’ program, which offers long-term residency to investors and entrepreneurs and favourable tax policies, ease of doing business, and a safe environment further sweeten the deal for Indian expatriates.
Understanding the Numbers
While the migration of 6,500 super-rich Indians may not sound significant, it’s important to put this figure into perspective; according to the Knight Frank India report, the population of high-net-worth individuals in India is continuing to grow rapidly.
For instance, in 2022, India boasted a total of 797,714 HNIs with a net asset value of $1 million or above; therefore, the departure of 6,500 individuals represents only a fraction, which is an approximate 0.81%, of the HNI population.
Moreover, data from the Ministry of External Affairs reveals that a staggering 2.5 million Indians migrate overseas annually; this migration encompasses a wide range of individuals who are seeking opportunities in various fields, including education, employment, and business.
Currently, the total number of the Indian diaspora, comprising both Non-Resident Indians (NRIs) and persons of Indian origin, stands at 32 million; therefore, in light of these numbers, the departure of 6,500 super-rich Indians may seem a relatively modest proportion, especially considering their combined wealth of $1 million; however, the trend is catching up!
What’s The Attraction
For some, the decision to leave India is a pursuit of greater opportunities and a desire for a certain quality of life that can be better achieved elsewhere, and hence, it reflects a complex desire for individual motivations and broader societal dynamics.
Countries like Australia, the UAE, Singapore, and the USA offer attractive packages, from advanced healthcare and education to political stability and work-life balance.
Thus, the exodus might be indicative of the perceived limitations in India; these limitations could include concerns about social stigmas, political instability, or perhaps an unfavourable tax regime.
Hence, many of these individuals might feel that their personal or financial aspirations align more closely with the conditions and opportunities available in other countries.
Factors Driving HNI Migration
Several factors contribute to the decision of super-rich Indians to relocate, including Economic Opportunities, Quality of Life,Taxation, Political Stability or Global Citizenship.
Whatever the motivation, the increasing exodus of high-net-worth individuals (HNIs) from India raises essential questions about whether expectations and aspirations are being met in the homeland or will ever be met.
Hence, Why Are Indian HNIs Moving Abroad?
High Quality of Life: Many affluent Indians seek a higher quality of life that includes better healthcare, superior educational institutions, and improved living standards and countries like Australia, Singapore, and the UAE offer these attractions in abundance.
Political Stability: The stability of a nation’s political environment is a significant factor in migration decisions.
Perhaps one reason could be the polarization of India’s political leadership, and Indian HNIs are seeking countries with established political stability to safeguard their investments and futures.
Favourable Tax Policies: Taxation plays a pivotal role in the financial decisions of HNIs, and jurisdictions with favourable and fair tax policies can help individuals optimize their wealth and assets.
Safe Escape from Social Stigmas: In some cases, wealthy Indians may seek to escape from societal stigmas or biases prevalent in the country, thus seeking more inclusive and tolerant societies abroad.
Stable Banking Systems: A robust and reliable banking system is essential for managing substantial wealth, and countries known for their stable banking systems, like Switzerland, may attracting Indian HNIs.
Currency Diversification: The opportunity to earn in strong foreign currencies while maintaining investments in the Indian rupee provides a hedge against currency fluctuations and economic instability.
Visa-Free Travel: Many countries offer visa-free travel or unrestricted mobility, providing Indian HNIs the freedom to explore the world hassle-free.
Investment Visa Pathways: Programs like the Canada startup visa and Australia’s 188 visa offer pathways for HNIs to invest in these countries, further incentivizing their migration.
The Viewpoint
As we witness a growing number of high-net-worth individuals (HNIs) leaving India for foreign shores, it begs a series of questioning that brings forth the negative aspects of such a trend.
What are the underlying factors and issues that might be prompting this exodus, and do they highlight significant concerns about the state of affairs in our homeland?
1. Are We Fleeing Unresolved Issues?
It’s concerning that a substantial number of affluent Indians are choosing to leave, possibly suggesting that they see unresolved issues in the country.
Therefore, are we, as a society, failing to address these issues adequately?
From social stigmas to political instability, are these factors pushing HNIs away rather than being addressed head-on?
2. Does India Fall Short on Quality of Life?
The pursuit of a higher quality of life is a crucial driver behind the emigration of HNIs.
Thus, is India lacking in providing basic amenities and services that would ensure a comfortable and fulfilling life for citizens?
Is there a notable gap between the opportunities available abroad and those within India?
3. Is the Taxation System Deterring Investment?
The allure of favourable tax policies in foreign countries is a significant motivator for the migration of HNIs.
Does this suggest India’s taxation system is discouraging investment and wealth creation within our borders?
Are we driving away potential contributors to our economy?
4. What About Social Stigmas and Bias?
The desire to escape from social stigmas and biases is another reason cited by some who choose to leave.
Does this indicate a deep-seated issue within our society, one that prevents inclusivity and equal opportunities?
Are we failing to create an environment where every individual can thrive without discrimination?
5. Does Political Uncertainty Remain Unaddressed?
The pursuit of political stability overseas raises concerns about political uncertainty within our country.
Are we doing enough to ensure a stable and predictable political environment that encourages investment and growth? Or is political turmoil pushing HNIs to seek more stable shores?
6. Are We Missing Out on Investment Opportunities?
The fact that Indian HNIs are choosing foreign countries for investment and business expansion suggests that they may see more attractive opportunities abroad.
7. Is the Brain Drain a Sign of Bigger Issues?
The departure of highly skilled individuals, often referred to as the “brain drain”, raises questions about our ability to retain talent.
Are we failing to provide an environment that nurtures innovation and retains our best and brightest?
Where Are These Wealthy Indians Heading?
Australia: Leading the pack, Australia is projected to welcome a substantial number of high-net-worth individuals through its Australia 188 visa program. In 2023, the country expects an influx of 5,200 millionaires, drawn by its robust economy, quality of life, and business opportunities.
United Arab Emirates (UAE): The UAE takes second place, attracting 4,500 new millionaires this year. Dubai, with its ‘Golden Visa’ program, offers a tax-friendly environment, ease of doing business, and a safe and cosmopolitan lifestyle.
Singapore: Singapore secures the third spot with an estimated inflow of 3,200 HNIs. The city-state is renowned for its financial hub, excellent education system, and global connectivity.
United States of America: The USA remains a perennial favourite among HNIs, with an estimated net influx of 2,100 high-net-worth individuals. Its diverse economy, educational institutions, and investment opportunities continue to attract wealth from around the world.
Switzerland: Known for its financial stability and picturesque landscapes, Switzerland expects to welcome 1,800 HNWIs in 2023. Its strong banking sector and well-preserved natural beauty make it an attractive destination.
Canada: With its friendly immigration policies and strong economy, Canada will welcome 1,600 HNWIs this year. Programs like the Canada startup visa make it particularly appealing for entrepreneurial Indians.
The Last Bit, While the emigration of HNIs may have some positive aspects, such as the global exposure and opportunities they gain, it’s imperative to critically examine the underlying issues that might be pushing them away from India.
These questions serve as a barometer to understand and address the negative aspects contributing to this trend and create a more inclusive, stable, and prosperous India that can retain its wealth and talent.
