Title: The Exodus of HNIs: Why Wealthy Indians Are Choosing to Leave
In a surprising trend that has been gaining momentum, India is witnessing an exodus of High Net Worth Individuals (HNIs) who are voluntarily giving up their Indian citizenship to settle in foreign lands. This phenomenon, which started as a trickle, has now turned into a significant outflow of the affluent. In the fiscal year 2020-21, a staggering 1.63 lakh Indians chose to renounce their Indian citizenship in favor of foreign citizenship, a number that has doubled over the past five years. The United States emerged as the preferred destination in 2021, with over 78,000 Indians acquiring American citizenship. Other favored destinations include Australia, Canada, the United Kingdom, Italy, and more.
The question that naturally arises is why these successful individuals are giving up their Indian passports at a time when the nation is celebrating the ‘Amrit Kaal,’ the period between India’s 75th Independence Day and the centennial celebration in 2047. Do they not love India and its flag? Why are they choosing to become adopted sons and daughters in foreign lands?
Firstly, it is essential to acknowledge that this is not a forced migration. In most cases, those who have opted to leave India are highly educated, wealthy, and privileged individuals. They are not fleeing persecution, famine, or civil unrest. Instead, their decision appears to be driven by a combination of factors.
The pursuit of economic opportunities is a prominent reason for this migration. Many HNIs believe that the grass is greener on the other side, with foreign countries offering better prospects for wealth creation and career growth. Moreover, the quality of life in Western nations is often perceived as superior, with cleaner environments and reduced pollution levels.
In countries like the United Arab Emirates (UAE) and Singapore, individual tax rates are significantly lower than in India. This can be a significant factor for wealthy individuals looking to optimize their financial situations.
When the Indian government cracked down on black money and tax evasion, some individuals resorted to a strategy involving family members staying abroad for 182 or more days. This non-resident status allowed them to maintain foreign accounts and businesses, providing a means to stash money.
Affirmative action policies in India have also been blamed for the migration of HNIs. However, this argument does not hold up entirely, as affirmative action primarily applies to government jobs, which constitute a small portion of the job market. In high-paying positions, the impact of these policies is even less significant.
Some individuals may be opting to acquire foreign citizenship due to India’s restriction on dual citizenship.
The wealthy in India often display different tendencies, reflected in their preference for exclusive gated communities with private security, water supply, and recreational spaces. These enclaves function as micro-nations, with interactions with the state limited to crime or emergencies. They tend to avoid government hospitals and educational facilities, opting for private alternatives. While this lifestyle indicates a level of autonomy, it also contributes to a disconnect from the broader population.
India’s historical economic policies, particularly during the formative years after independence, hindered the growth of a robust middle class. The slow-paced economic growth led to the distribution of poverty rather than prosperity. The entrepreneurial potential of the nation was stifled, resulting in a limited middle class.
Despite these challenges, the aspiration to improve one’s circumstances and access opportunities in foreign lands is a positive development. It represents hope for a better future and underscores the need for policies that promote the growth of the middle class in India.
Migration to Western countries, especially the top destinations for Indians, often requires meeting certain financial and educational thresholds. These criteria place individuals in the top one percent of the Indian population. For example, the United States typically grants H1B visas and permanent residency to highly skilled and well-compensated individuals, creating a barrier for most Indians.
As India continues to integrate with the global economy, national boundaries may become less significant. However, for now, the burden of flag-waving nationalistic pride falls on the poor and underprivileged, while the wealthy seek opportunities beyond borders.
The increasing emigration of HNIs from India is a complex phenomenon driven by a combination of economic, financial, and lifestyle factors. While it may raise questions about patriotism and national loyalty, it also highlights the aspirations of individuals to seek better opportunities and improve their quality of life. It is crucial for policymakers to address the factors contributing to this migration and work towards creating an environment that encourages prosperity and growth for all segments of society. Ultimately, a robust and inclusive middle class can democratize the process of migration and contribute to the nation’s development.
arjasrikanth.in







