A recent survey reveals that 22% of affluent Indians are contemplating moving abroad, driven by factors such as subpar living conditions, the allure of a superior lifestyle, and a more favorable business climate in other nations. Conducted by Kotak Private in collaboration with EY, this study surveyed 150 ultra-high-net-worth individuals (UHNIs) and sheds light on the migration trends among wealthy Indians.
Popular Destinations for Migration
The United States, United Kingdom, Australia, Canada, and the UAE—notably due to its golden visa initiative—are among the top choices for these high-net-worth individuals seeking new horizons. According to the Indian Foreign Ministry, approximately 2.5 million Indians migrate abroad annually, highlighting a significant trend in relocation.
Migration Trends Among the Wealthy
The survey indicates that one in five ultra-wealthy individuals is either planning to migrate or is already in the process. Most aim to establish permanent residency in their chosen countries while retaining their Indian nationality. Key motivators for this shift include:
- Improved standard of living
- Enhanced healthcare options
- Quality education for children
- A better overall lifestyle
Interestingly, over two-thirds of respondents identified smoother business operations as a crucial reason for their potential relocation.
An Investment in the Future
Kotak Mahindra Bank’s President, Gautami Gavankar, emphasizes that the decision to migrate should not be misinterpreted as a capital exodus. The current regulations restrict the amount of money individuals can transfer abroad, ensuring that significant wealth remains within the country. Indian citizens are limited to transferring $250,000 annually, while non-residents can transfer up to $1 million.
Who is Migrating?
The survey highlights that professionals exhibit a stronger inclination to migrate compared to entrepreneurs or those inheriting wealth. In terms of age demographics, UHNIs aged 36-40 and those over 61 are the most likely to consider moving overseas. As of 2023, there are 283,000 individuals classified as UHNIs in India, each boasting a net worth exceeding ₹25 crore. This collective wealth amounts to an impressive ₹28.3 lakh crore, projected to surge to ₹35.9 lakh crore with 430,000 UHNIs by 2028.
Key Growth Drivers
The survey indicates that factors such as rising consumption, favorable demographics, and robust economic growth will continue to drive the growth of the ultra-wealthy segment in India. Notably, spending on health and wellness has gained prominence, especially post-pandemic, with 81% of respondents reporting increased expenditure in this area.
This insight into the migration patterns of India’s wealthy elite not only sheds light on their aspirations but also underscores the evolving landscape of wealth in the country. As these individuals seek better opportunities abroad, the implications for both the Indian economy and the global market remain significant.
