Why are India’s richest citizens migrating? know the countries they’re choosing to move to

A recent survey reveals that a significant number of India’s ultra-wealthy individuals, or Ultra High-Net-Worth Individuals (UHNIs), are either planning to or are already in the process of leaving the country. The survey, conducted by Kotak Private Banking, a division of Kotak Mahindra Bank, shows that at least 22% of UHNIs wish to migrate abroad. The survey was carried out in the first two quarters of last year, across a dozen cities, and interviewed around 150 UHNIs with a net worth of over Rs 25 crore.

The main reasons for the migration plans include better living conditions, more tax advantages, and a more business-friendly environment. Many of these UHNIs are looking for destinations such as the United States, the United Kingdom, Australia, Canada, and the UAE. The UAE's Golden Visa scheme has become particularly popular among this group.

One of the key factors driving this migration is the desire for improved quality of life abroad. UHNIs cited better healthcare, education, and a more welcoming environment for business as major reasons for considering the move. Interestingly, despite their intention to live abroad, many UHNIs expressed a desire to retain their Indian citizenship.

Among those looking to migrate, professionals were found to be more likely to do so than entrepreneurs or inheritors. The survey also indicated that UHNIs between the ages of 36 and 40, as well as those over 61, were the most likely to leave India.

The survey estimates that India had 2.83 lakh UHNIs in 2023, with a combined wealth of Rs 2.83 trillion. This number is expected to rise to 4.3 lakh by 2028, with a net worth of Rs 3.59 trillion. The Kotak survey also highlighted that UHNIs are diversifying their assets globally, including in equity, real estate, and other investments.

Although some believe this outflow of wealth could signal a slow-down in India's economy, Kotak Mahindra Bank's president Gautami Gavankar emphasized that the survey should not be viewed as capital leaving the country. There are restrictions on how much money an individual can move out of India, which limits the financial impact of such migration.

In conclusion, while the survey shows that many ultra-wealthy individuals are considering moving abroad, the process is complex, and India’s overall economic growth continues to attract more UHNIs.