Why the rich are in a rush to move out of India

Indian passport weakens: Why the rich are in a rush to move out of India

Indians have suffered a dip in their global mobility this year, with India dropping from 80th to 82nd place on the Henley Passport Index between January and July, implying that Indian citizens have visa-free access to only 58 destinations. India is also projected to lose 4,300 millionaires in 2024, down from 5,100 in the previous year.

"The reality of having visa-free access to just 58 destinations is just one of the reasons driving the significant increase in awareness of and demand for global investment migration opportunities among Indian high-net-worth families...In addition to having a contingency plan in place and enhancing their visa-free travel, among the key reasons Indian families consider alternative residence and/or citizenship is ease of access to excellent higher education institutions for their children. India’s affluent are not just looking to protect their wealth — they are strategically investing in countries that offer a robust educational infrastructure. For this reason, the programs attracting the most attention in terms of enquiries are those offered by Australia, Austria, Canada, Portugal, and the USA," said Rohit Bhardwaj, Director Private Clients and Country Head India at Henley & Partners.

The ability to travel visa-free to a wide array of destinations is no longer merely a convenience — it’s a powerful economic tool that can drive growth, foster international cooperation, and attract foreign investment, as per Dr. Juerg Steffen, FIMC, is the Chief Executive Officer of Henley & Partners.
Indian students constitute the biggest share of those studying internationally in the world after China — with an estimated 1.5 million studying elsewhere. Countries with renowned educational institutions, such as Australia, Canada, the UK, and the USA are particularly attractive, and these education hotspots also offer investment migration programs.

As per recent market statistics, the USA is the country that attracts the highest number of Indian students globally. Likewise, the US EB-5 Immigration Investor Program is a popular choice among Indian investors, who rank 3rd globally (after China and Vietnam) in terms of the number of visas issued to date in 2024. A significant underlying motivator for wealthy Indian parents whose children aspire to attend prestigious universities is to secure a future without visa complexities after they graduate.

"Consider an Indian high-net-worth investor securing their child access to an Ivy League US college. The four-year degree could cost $250,000. But graduating with permanent residence rights in the USA multiplies career upside, given that America’s median salaries are 32 times higher than India’s, and tech sector equity compensation potential is exponentially greater in Silicon Valley," said Bhardwaj.

Gaining US work rights via the US EB-5 Immigrant Investor Program requires an investment of $800,000. "Compared to the lifetime earning potential for the family and future generations, that is an insignificant investment in residence and, potentially, citizenship privileges for capitalizing on the American Dream. The power of education and expanded access is clear. For the same reason, we are seeing an increase in inquiries regarding investment migration programs in Australia, Canada, the UK, and Europe — destinations where many Indian students pursue higher education," said Bhardwaj.

According to the Henley Private Wealth Migration Dashboard, India experienced wealth growth of 85% between 2013 and 2023. As the economy continues to grow and create more high-net-worth individuals, the demand for strategic residence and citizenship planning is set to rise.

Allowing the free movement of people and capital across international borders enables investment and talent to flow to where it is most needed and has the highest return. For the third year running, the UAE looks set to take first place as the world’s leading wealth magnet, with a record-breaking 6,700 millionaires expected to make the Emirates home by the end of the year, according to the recent Henley Private Wealth Migration Report 2024.

With consistent high inflows from India, the wider Middle East region, Russia, and Africa, the anticipated influx of larger numbers of Brits and Europeans looks set to see the Emirates attract nearly twice as many millionaires as its nearest rival, the USA, which is projected to benefit from a net inflow of 3,800 millionaires in 2024.

Andrew Amoils, Head of Research for New World Wealth, says “the ability to travel visa-free or having the option to move your business to a more favorable city have become crucial elements in international wealth and legacy planning for affluent individuals. Increasing numbers of global investors are utilizing investment migration as a mechanism to invest in, access, and operate across a range of wealth hubs worldwide.”