Around 20% of UHNWIs look to settle abroad: Kotak Private Banking survey

They prefer equities investing followed by commercial real estate

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One in five ultra-high-net-worth individuals (UHNWIs) in India plans to migrate out of the country to enhance their living standard and gain access to better healthcare, education, and business environment, according to a survey by Kotak Private Banking, a division of Kotak Mahindra Bank.

 

These super-rich Indians intend to reside in their chosen host country permanently while retaining their Indian citizenship, said the report conducted in the first two quarters of FY25.

 

According to the survey based on 150 UHNWIs, professionals showed a greater inclination towards migration compared with entrepreneurs or inheritors. Those aged between 36 and 40 years, and above 61 years, expressed the strongest interest. The preferred destinations included the United States, the United Kingdom, Australia, Canada, and the United Arab Emirates (UAE), with its Golden Visa scheme being particularly attractive, it said.

 

The report highlighted residency-through-investment programmes, or Golden Visas, as a key enabler.

 

Popular options include the US EB-5 Visa, Portugal’s Golden Visa, and Canada’s Start-up Visa. The UAE’s Golden Visa stands out among Indian UHNWIs, offering residency, tax benefits, a thriving property market, and proximity to India, making it both practical and appealing.

 

Gautami Gavankar, president Kotak Mahindra Bank, emphasised that this migration trend did not signal a capital flight. Indian residents are limited to remitting $250,000 annually, while NRIs can remit up to $1 million per year.

 

The report also revealed UHNWIs’ aggressive investment approach, with portfolios prioritising domestic and global equity markets, followed by commercial real estate, debt, and alternative investments. Increasingly, these individuals are looking beyond India for smart, practical opportunities, driven by a favourable business climate, tax advantages, and portfolio diversification. As their wealth grows and spending shifts to dollars, investing in dollar-based assets becomes critical.

 

As of 2023, India had 283,000 UHNWIs, each having a net worth of over ₹25 crore, with a combined wealth of ₹232 trillion. The survey projects this to rise to 4.3 lakh individuals possessing a wealth of ₹359 trillion by 2028.   

(Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd)