Over a fifth of super rich want to migrate out of India: Survey

At least 22 per cent super rich Indians wish to leave the country due to factors like living conditions here, better standard of life abroad and also easier business environment in other countries, a survey said on Wednesday.

The survey of 150 Ultra High Net Worth Individuals (UHNWIs) said that the US, UK, Australia, Canada and the UAE—owing to its golden visa scheme—are the top destinations where the rich prefer to settle down.

Kotak Private, a leading wealth manager, in association with consultancy firm EY, conducted the survey and noted that approximately 25 lakh Indians migrate annually, as per the Ministry of External Affairs.

“One in five ultra HNIs surveyed are either in the process of migrating or planning to do so,” the survey revealed. Most intend to reside permanently in their host country while retaining Indian citizenship.

They seek improved standard of living, better healthcare, superior education, and an enhanced lifestyle, the survey said, adding that over two-thirds of respondents said smoothening of business operations is a key driver for them.

Calling the migration decision as an “investment in the future”, the survey also said that the pursuit of excellent higher education for their children influences this choice.

However, Kotak Mahindra Bank’s president Gautami Gavankar said the decision to migrate should not be seen as a flight of capital out of the country, pointing out that the caps on such activities ensure that the money does not flow out even if a person changes residency.

She said an Indian citizen residing in India can only take out USD 250,000 per year, while a non-resident is allowed USD 1 million, ensuring there is no flight of capital.

The survey further said the professionals show a higher propensity to migrate than entrepreneurs or inheritors, while from an age group perspective, it is UHNIs in the 36-40 years and above 61 years who are more keen to migrate.

There were 2.83 lakh UHNIs in 2023, with each having a net worth of over Rs 25 crore, and their aggregate wealth was pegged at Rs 2.83 lakh crore. This number is expected to grow to 4.3 lakh individuals possessing a wealth of Rs 359 lakh crore by 2028, as per the survey.

Factors like higher consumption, demographic shifts, and strong economic growth will help in the growth of this segment, the survey said.

On the spending front, the survey noted that health and wellness have emerged as key areas, especially after the pandemic, with 81 per cent of respondents reporting increased expenditures under the category.