India's Super Rich Are Leaving the Country in Search of Better Standard of Living, Investment Opportunities In 2021, the Ministry of External Affairs reported that over 2.5 million Indians migrate to other countries every year

A Kotak Private Banking survey conducted, in association with consultancy firm EY, stated that at least 16% of Ultra-High-Net-Worth Individuals (UHNIs) plan to or have already set up a secondary residence abroad while retaining their Indian citizenship. Of the surveyed individuals, 1% are planning to or are in the process of migrating and settling down abroad permanently in a country of my choice. At least 4% of individuals plan to avail themselves of or already have a secondary passport via citizenship programmes through investments, the report stated.

These individuals have cited better living conditions, investment opportunities, and higher quality of health services for their decision to move abroad.

"Education, too, is a priority, with UHNIs seeking to equip the next generation with global exposure and capabilities," Oisharya Das, CEO - Private Banking, Kotak Mahindra Bank Ltd, said. In 2024, around 13,33,000 students left India to pursue educational opportunities overseas, the report stated.

A Henley and Partners report published last year shared similar views. "Indian millionaires often depart the sub-continent in search of a better lifestyle, safer and cleaner environments, and access to more premium health and education services," the report had mentioned.

The report stated India was seeing high net outflows because of the success of their sizeable economy in generating new millionaires. "China, India, South Korea, Singapore, and Vietnam have all registered a huge relative increase in their number of high-net-worth individuals — we can be confident this trend will continue as intra-Asian growth continues to surge," the Henley and Partners report stated.

And as the economies grow, more and more UHNIs come up, fresher capital is there for the UHNIs to move to countries that provide better services.

Where are they moving?

According to the report, the United Arab Emirates is the most popular destination among the UHNIs. "Attractive tax benefits, a booming property market, and ease of movement make it a pragmatic choice. It is also closer to home," the report stated.

Not just India but many other countries prefer UAE either as their second home or investment hub due to its zero tax policy on individuals and corporate tax is also minimal.

India's other choices include the United States of America, Canada, Germany, Italy, and New Zealand.
According to the survey, in 2023, there were 283,000 Indians classified as UHNIs, with an estimated total wealth of INR 2.83 trillion. This number is expected to grow to 430,000 individuals, with a total wealth of INR 35.9 trillion by 2028.

In 2021, the Ministry of External Affairs reported that over 2.5 million Indians migrate to other countries every year. The report stated that the Indian diaspora is one of the largest in the world, with over 32 million NRIs and Persons of Indian Origin. Ultra-HNIs in the age group 36-40 years and 61 years and above show a higher propensity towards migration, the Kotak Bank report stated.

Where are the super rich investing?

The Kotak report also painted a picture of the investment trend of India's wealthiest. A significant 62% of Ultra-HNIs prefer aggressive equity investments, with a third having global investments, mainly in the United States and the UK. Residential real estate, direct equities, and mutual funds are popular global assets.

They showed a higher propensity towards allocating 32% of their investments in equities, with 89% favoring individual stocks. Global equities, particularly in the U.S., are gaining traction, the report stated.
Beyond traditional investments, Ultra-HNIs also focus on lifestyle expenditures. Seven percent of their spending goes towards foreign leisure travel. Additionally, they are investing in home fitness solutions and sustainable diets, reflecting their broader focus on health and well-being.

"Health and wellness have emerged as central themes (for the movement), with a growing number of families prioritising holistic well-being alongside financial security. Education, too, is a priority, with Ultra-HNIs seeking to equip the next generation with global exposure and capabilities to navigate a rapidly changing world. Additionally, the world of collectibles has gained renewed interest, not only as a store of value but as a means of expressing family heritage and cultural appreciation," Das said.