The survey of 150 ultra high networth individuals said that the US, UK, Australia, Canada and even UAE due to its golden visa scheme are the favourite destinations where the rich prefer to settle down.
Mumbai: At least 22 per cent super rich Indians wish to leave the country due to factors like living conditions here, better standard of life abroad and also easier business environment in other countries, a survey said on Tuesday.
The survey of 150 ultra high networth individuals said that the US, UK, Australia, Canada and even UAE due to its golden visa scheme are the favourite destinations where the rich prefer to settle down.
Kotak Private, a leading wealth manager in the country which undertook the survey in association with consultancy EY, said 25 lakh Indians migrate to other countries every year as per the foreign ministry.
“One in five ultra HNIs surveyed are currently in the process of or plan to migrate,” the survey findings said, adding most of them intend to reside in their host country of choice permanently while retaining their Indian citizenship.
They seek improved standard of living, healthcare solutions, education or lifestyle, the survey said, adding that over two-thirds said smoothening of business operations is a key driver for them.
Calling the migration decision as an “investment in the future”, the survey also said that pursuit of excellent higher education for their children leads them to make the choice.
Kotak Mahindra Bank’s president Gautami Gavankar, however, said the decision to migrate should not be seen as a flight of capital out of the country, pointing out that the caps on such activities ensure that the money does not flow out even if a person changes residency.
She said an Indian citizen residing in India can only take out USD 250,000 per year, while a non-resident is allowed USD 1 million, which ensures that there is no flight of capital.
The survey said the professionals show a higher propensity to migrate than the entrepreneurs or inheritors, while from an age group perspective, it is UHINs in the 36-40 years and above 61 years who are more keen to migrate.
There were 2.83 lakh Indians who can be tagged as UHNIs in 2023, with each having a net worth of over Rs 25 crore and their aggregate wealth was pegged at Rs 2.83 lakh crore. The same is expected to grow to 4.3 lakh individuals possessing a wealth of Rs 359 lakh crore by 2028, as per the survey.
Factors like higher consumption, the demographics, and strong economic growth will help in the growth of this segment, the survey said.
From a spending perspective, health and wellness has emerged as a key area especially after the pandemic, it said, adding that 81 per cent have reported an increase in their spends under the category.