Wealth on the move: Why are rich Indians heading for greener pastures?

More Indians renounced their citizenship and took citizenship in other countries in 2022 than ever before, according to data.

Answering multiple questions in Parliament — the last on March 31 this year — Minister of State for External Affairs V Muraleedharan told the Lok Sabha that more than 200,000 Indians gave up Indian citizenship in 2022.

The question was asked by Congress Members of Parliament Kodikunnil Suresh and M K Raghavan, and All India Majlis-e-Ittehadul Muslimeen chief Asaduddin Owaisi.

The minister emphasised that while surrendering Indian citizenship was a matter of choice, “a successful, prosperous, and influential diaspora is an asset for India. India stands to gain a lot from tapping into its diaspora networks and productively utilising the soft power that comes from having such a flourishing diaspora”.

Meanwhile, London-based firm Henley & Partners, which advises individuals and families on migration and relocation, has found that Indian high networth individuals (HNWIs) who migrated from India to various geographies were, across the globe, the second highest in 2022.

Millionaires, or HNWIs, refer to individuals with an investable wealth of $1 million or more.

The highest number of HNWIs to give up their citizenship was from China.

Nine of the top 10 countries for net inflows of HNWIs in 2023 will host formal investment migration programmes and actively encourage foreign direct investment in return for residence rights, the firm says.

China’s HNWI migration is forecast to be 13,500 in 2023. In 2022, it was 10,800.

India saw 7,500 HNWI migrations in 2022.

Based on this year’s Henley Private Wealth Migration Report, 6,500 millionaires are set to leave India in 2023, while statistics from the Global Wealth Migration Review show that 2 per cent of the country’s millionaires have already flocked overseas in 2020.

According to government data, more than 1.6 million Indians have renounced their Indian citizenship since 2011, including a whopping 225,620 in 2022 alone, averaging around 618 per day.

While the staggering numbers beg reason, the Indian government has said that individuals renounce Indian citizenship “for reasons personal to them”.

India has the largest diaspora population in the world, with 18 million people from the country living outside their homeland in 2020, according to a report by the United Nations.

Why rich Indians are seeking a passport to greener — foreign — pastures?

• Better health care
• Open and flexible business environments
• Access to better academic, professional opportunities
• Economic well-being

Sources: Lok Sabha questions, Henley Private Wealth Migration Report