22% of India’s ultra-rich plan to migrate for better living, business ease: Survey

Guwahati, March 27: A recent survey has revealed that 22% of India’s ultra-high-net-worth individuals (UHNIs) are considering migration, driven by factors such as improved living conditions, better business environments, and enhanced education opportunities for their children.

The survey, conducted by Kotak Private in collaboration with consultancy firm EY, studied 150 UHNIs and found that the United States, United Kingdom, Australia, Canada, and the UAE—particularly due to its golden visa scheme—are the most preferred destinations.

The survey aligns with the Indian Ministry of External Affairs’ data, which states that around 25 lakh Indians migrate abroad annually.

According to the report, one in five ultra-wealthy individuals surveyed are either in the process of migrating or planning to do so. Most intend to settle in their new country permanently while retaining their Indian citizenship.

Business owners, entrepreneurs, and inheritors showed lower migration interest compared to professionals, who demonstrated a higher propensity to relocate.

From an age perspective, individuals between 36-40 years and those above 61 years are the most inclined to move abroad. The pursuit of better education for their children remains a key motivator, with many considering migration an "investment in the future." Additionally, over two-thirds of the respondents cited smoother business operations as a major reason for relocating.

Despite concerns about capital flight, Kotak Mahindra Bank's President, Gautami Gavankar, clarified that migration does not necessarily mean an outflow of wealth from India. She pointed out that financial regulations cap outward remittances, with Indian residents allowed to take out up to USD 2,50,000 per year, while non-residents can transfer up to USD 1 million.

The report also highlighted the growing UHNI segment in India. In 2023, there were 3.83 lakh individuals with a net worth exceeding Rs 25 crore, with a collective wealth of Rs 2.83 lakh crore.

This number is expected to rise to 4.3 lakh UHNIs by 2028, with an estimated aggregate wealth of Rs 359 lakh crore. The report attributes this growth to strong economic momentum, rising consumption patterns, and favorable demographics.

Post-pandemic, the survey found a significant shift in spending trends, with health and wellness emerging as a top priority. Around 81% of respondents reported increased expenditure on healthcare, reflecting a broader trend of prioritising well-being.

With an increasing number of wealthy Indians eyeing overseas opportunities, the survey underscores the evolving aspirations of the country’s elite, balancing global ambitions with domestic financial ties.