According to statistics submitted in Parliament on February 9, 2023, by the Ministry of External Affairs (MEA), over 2.25 lakh Indians would abandon their Indian citizenship in 2022, the highest number since 2011. The data shows how Indians, particularly high-net-worth individuals (HNIs), are travelling west with new passports in quest of better prospects, healthcare, quality of life, and education, among other things.
Who are High Net Individuals (HNIs)?
HNIs are individuals with a net worth of more than USD 1 million (INR 8.2 crores). According to the Henley Global Citizens Report, 3.47 lakh such individuals would exist in India in December 2021. Just nine cities have more than one lakh HNIs: Mumbai, Delhi, Kolkata, Bangalore, Hyderabad, Pune, Chennai, Gurgaon, and Ahmedabad.
India was fourth in the world in terms of privately held wealth, trailing only the United States, China, and Japan.
Also Read: New Draft Wage Rates for H-1B Holders in USA to be Announced in September 2023
According to industry representatives, there has been an increase in requests for residence-through-investment programmes, particularly the EB-5 visa for the United States, the Golden Visa for Portugal, the Australian Global Talent Independent Visa, the Malta Permanent Residency Programme, and the Greece Residence by Investment Programme.
Indians Going West
Shilpa Menon is the senior director of LCR Capital Partners' Indian division, a worldwide private investment and consulting services organisation. According to her, India is rapidly increasing in the ranks of successful applicants for the Portugal Golden Visa, moving to fourth position [in the world] in 2022, from 5th place in 2021 and ninth place in 2020. Individuals and families benefit from the Portuguese investor visa programme, which allows them to live, work, study, or retire in Portugal and the rest of the European Union.
Purchasing property worth Euro 500,000 (INR 4.4 crore) in a high-density region and creating at least 10 employment for Portuguese nationals are required eligibility requirements. After five years, the individual can receive a Portuguese passport, allowing them to visit over 150 countries without a visa.
The USA's EB-5 visa programme is likewise in high demand. After five years, the visa holder is eligible for American citizenship.
Investing for the Children
According to Goldi Chawla, the head of Indian and Middle Eastern operations for CanAm Enterprises, which works in the immigration-linked investment arena, Indians will obtain 211 EB-5 visas in 2021, the third largest number of any country. His company handled 194 of them.
He went on to say that Indian parents were among the top applicants for EB-5 visas, hoping to get their children a green card sooner.
Abhinav Lohia of Golden Gate Global, another immigrant investment business, stated that in the last six months, they have had over 100 inquiries and have closed 15-20 EB-5 visa applications.
Individuals are Wealthy and Willing
Funds for the EB-5 programme are collected in an escrow account and distributed as loans for development and construction projects. After the project is finished, the borrower refinances this loan with a long-term debt from the bank, which he repays in around five years. Most projects have done well, including residential construction in the Bay Area (San Francisco and surrounding areas) and business buildings in New York. According to Mr Lohia, some people have also invested in the hotel sector, adding that the trend does not necessarily indicate a flight of wealth from India, but rather a diversification of capital.
Also Read: H-1B and EB-5 Visa Fees to Hike Sharply: Biden Administration
According to Ms Menon, HNIs have widened their notion of wealth. Apart from financial possessions, people now regard good health, legacy, and the quality of life they share with their family to be important factors in their overall wealth. Today's rich families desire better healthcare, more open and flexible work settings, and more access to academic and professional possibilities. These choices are provided via alternative residency programmes.
Planning to Study Abroad at Your Dream University?
Source: The Hindu
