So long, goodbye: Why are the rich leaving India?

How big is the exodus of the rich from India?

How big is the exodus of the rich from India?

By 2023, India will be the second biggest loser of millionaires, after China’s net outflow of 13,500. Last year, India lost 7,500 HNWI, the third highest after China (10,800) and war-torn Russia (8,500). Between 2013 and 2022, India lost 48,500 HNWIs, according to data compiled by Henley and Partners. The report says that “these outflows are not particularly worrying as India produces many more new millionaires than it loses through migration.” That’s true: the net loss in 2023 is just 1.9% of the total number of resident millionaires, 344,600. However, the total number also saw a slight decrease from 357,000 last year.

By 2023, India will be the second biggest loser of millionaires, after China’s net outflow of 13,500. Last year, India lost 7,500 HNWI, the third highest after China (10,800) and war-torn Russia (8,500). Between 2013 and 2022, India lost 48,500 HNWIs, according to data compiled by Henley and Partners. The report says that “these outflows are not particularly worrying as India produces many more new millionaires than it loses through migration.” That’s true: the net loss in 2023 is just 1.9% of the total number of resident millionaires, 344,600. However, the total number also saw a slight decrease from 357,000 last year.

Why are HNWIs leaving India?

Why are HNWIs leaving India?

“Prohibitory tax legislation” and “convoluted and complex rules related to outgoing remittances,” the report says. This year’s union budget reduced the surcharge for those who earn more than $5 crores, reducing the top tax rate from 42.7% to 39% under the new tax regime. It could have been a relief, but there are other concerns. For example, the recent increase in the tax collected at source from 5% to 20% on all foreign remittances above $ 7 lakh except for education and medical bills. The rich also seek to live in other countries for non-monetary reasons, such as children’s education, social security and a better lifestyle.

“Prohibitory tax legislation” and “convoluted and complex rules related to outgoing remittances,” the report says. This year’s union budget reduced the surcharge for those who earn more than $5 crores, reducing the top tax rate from 42.7% to 39% under the new tax regime. It could have been a relief, but there are other concerns. For example, the recent increase in the tax collected at source from 5% to 20% on all foreign remittances above $ 7 lakh except for education and medical bills. The rich also seek to live in other countries for non-monetary reasons, such as children’s education, social security and a better lifestyle.

Where is everyone moving?

Where is everyone moving?

The United States, Canada and Australia remain top destinations not only for the wealthy, but also for low-income Indians. Higher education and career prospects in these countries drive demand. Tech entrepreneurs and wealthy Indian families have also established their businesses and offices in Dubai and Singapore to access a larger market and strong banking solutions.

The United States, Canada and Australia remain top destinations not only for the wealthy, but also for low-income Indians. Higher education and career prospects in these countries drive demand. Tech entrepreneurs and wealthy Indian families have also established their businesses and offices in Dubai and Singapore to access a larger market and strong banking solutions.

Is it easier for the rich to emigrate?

Is it easier for the rich to emigrate?

Yes. Countries offer an easier visa route for those wishing to make an investment or establish a business. The US EB-5 immigrant investor program, for example, offers a much smaller queue than other routes to obtaining a green card for a minimum investment of $800,000. The UAE Golden Visa grants renewable residency for up to 10 years with a minimum investment of $550,000. Indian millionaires sometimes move to exotic locations or tax havens such as Portugal, Greece and Monaco, albeit in smaller numbers.

Yes. Countries offer an easier visa route for those wishing to make an investment or establish a business. The US EB-5 immigrant investor program, for example, offers a much smaller queue than other routes to obtaining a green card for a minimum investment of $800,000. The UAE Golden Visa grants renewable residency for up to 10 years with a minimum investment of $550,000. Indian millionaires sometimes move to exotic locations or tax havens such as Portugal, Greece and Monaco, albeit in smaller numbers.

Should India allow dual citizenship?

Should India allow dual citizenship?

Investment migration is certainly a drain, but it is also a reality. This loss is partly offset by remittances, growing trade connections, foreign investment, and technology transfers from destination countries. While most Indians who opt for permanent residence elsewhere do not necessarily surrender their passport or acquire a new citizenship, many do so after living abroad for many years. In such a scenario, a dual citizenship would have allowed them to keep their Indian passport, as many would like to do.

Investment migration is certainly a drain, but it is also a reality. This loss is partly offset by remittances, growing trade connections, foreign investment, and technology transfers from destination countries. While most Indians who opt for permanent residence elsewhere do not necessarily surrender their passport or acquire a new citizenship, many do so after living abroad for many years. In such a scenario, a dual citizenship would have allowed them to keep their Indian passport, as many would like to do.