Over 2.25 lakh Indians renounced Indian citizenship in 2022 as per the data tabled by the Ministry of External Affairs (MEA) in Parliament on February 9. This was the highest number of Indians renouncing their citizenship since 2011.
The Ministry’s data also reflect how Indians, especially high net worth individuals (HNIs) are moving westward with new passports, in search of better opportunities, healthcare, quality of life, and education, among several other factors. HNIs are those who have wealth of over $1 million or ₹8.2 crore. According to the Henley Global Citizens Report, there were 3.47 lakh such people in India in December 2021.
Notably, residence-through-investment programmes have become one sought after mode and HNIs are moving out and gaining foreign citizenship. These programmes are offered by the United States through the EB-5 visa, and by others such as through the Portugal Golden Visa, Australian Global Talent Independent Visa, Malta Permanent Residency Programme, and Greece Residence by Investment Program. Industry representatives say that there has been a surge in requests for residence-through-investment programmes.
For instance, Shilpa Menon of the Indian branch of LCR Capital Partners, a global private investment and advisory services firm told The Hindu: “India is really rising in the ranks among successful applicants for the Portugal Golden Visa, climbing to fourth place [in the world] in 2022, from fifth place in 2021, and ninth place in 2020.”
Among the qualifying requirements for the Portugal programme are purchasing property worth Euro 500,000 (₹4.4 crore) in a high-density area and creating at least 10 jobs for Portuguese nationals, are mandatory. Five years after the investment, the individual can obtain a Portuguese passport, making them eligible to visit over 150 countries without a visa. Portugal last week decided to end the programme, as per a Reuters report.
The EB-5 visa programme of the U.S., which requires a minimum investment amount of $800,000 (around ₹6.6 crore) over a period of 5 to 7 years and the creation of 10 permanent jobs for U.S. citizens, is also much sought after. According to an industry expert, Indians received 211 EB-5 visas in 2021, the third highest of any country. Notably, Indian parents were among the highest applicants for EB-5 visas, investing to give their children faster access to a green card.
However, it isn’t just about investments, points out Ms. Menon. HNIs have broadened their definition of wealth. “Beyond financial assets, they now also consider good health, legacy, and the quality of life they enjoy with their families as key contributors to their holistic wealth,” she said. “Today, wealthy families want better healthcare, open and flexible business environments, and access to better academic and professional opportunities. Alternative residency programmes provide them these options.”
The last year saw the highest number of Indians renouncing their citizenship in more than a decade. HNIs taking their investments out of the country does to an extent indicate that there is a long way to go for the creation of conducive investment and business climate in the country.
Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor’s Pick and more. Click here.
The Hindu’s Editorials
Text & Context
The Hindu’s Daily News Quiz
The Election Commission of India has recognised the ‘now and arrow’ symbol for Maharashtra CM Eknath Shinde’s faction of the Shiv Sena. Before this, what symbol had been assigned to this faction?
- Two swords and a shield
- Flaming Torch
- A trident
- Tiger paw
To know the answer and to play the full quiz, click here.
