Rich Indians are leaving the country in large numbers. But where are they going?

A new survey shows that those with a net worth of over Rs 25 crore – known as Ultra High-Net worth Individuals (UHNIs) either want to or are in the process of leaving India.

The research, conducted by a leading wealth management firm, cited better living conditions, tax advantages and easier business conditions.

Around 25 lakh Indians migrate abroad every year, data from the foreign ministry shows.

But what do we know about the survey? What does it show? And where are the ultra-wealthy going?

Let’s take a closer look:

What do we know about the survey?

The survey was undertaken by Kotak Private Banking – a division of Kotak Mahindra Bank.

It is entitled Top Of The Pyramid India: Decoding The Ultra HNI.

As per The Times of India, the research was conducted across a dozen cities in the first two quarters of the previous year.

Around 150 UHNIs were interviewed for the survey.

Though Kotak Private Banking focuses on those with a net worth of Rs over 300 crore, those interviewed for this survey had a net worth of over Rs 25 crore.

As per Business Standard, the survey showed that at least 22 per cent of UHNIs wish to leave the country.

“One in five ultra HNIs surveyed are currently in the process of or plan to migrate,” the survey found.

The survey showed that UHNIs favour destinations such as the US , the UK, Australia, Canada and UAE .

The UAE’s golden visa scheme has proved particularly popular with the elite.

The UHNIs cited a number of reasons such as living conditions in India, quality of life abroad, a more welcoming business environment, better healthcare and education.

They called the decision an “investment in the future.”

Two-thirds said less business regulations were a key motivating factor.

Interestingly, most UHNIs said that even though they want to remain abroad permanently, they still want to keep their Indian citizenship.

The survey also stated that professionals are more likely to migrate compared to entrepreneurs or inheritors.

UHNIs between the ages of 36 and 40 and over 61 are more likely to migrate.

According to the newspaper, there were 2.83 lakh UHNIs in 2023.

Their cumulative wealth was estimated at Rs 2.83 trillion.

India is likely to have 4.3 lakh UHNIs by 2028 with a net worth of Rs 3.59 trillion by 2028, according to the survey.

As per News9Live, higher consumption, the demographics, and strong economic growth will continue to drive an increase in UNHIs.

Health and wellness have emerged as a key area especially after the pandemic with 81 per cent reporting an increase in their spends.

“Ultra-HNIs are diversifying their portfolios and embracing both domestic and global assets, setting the stage for a significant rise in their spending by 2028,” Oisharya Das, CEO, Kotak Private Banking, Kotak Mahindra Bank, told The Times of India.

As per NDTV Profit, the Kotak survey shows that equity remains the asset class choice among HNIs and Ultra HNIs.

Around 32 per cent of them hold equity, with 29 per cent having real estate holdings, 21 per cent invested in debt and 18 per cent in alternate assets.

Forty-five per cent have commercial real estate.

Business Standard quoted Kotak Mahindra Bank’s president Gautami Gavankar as saying the survey should not be viewed as capital leaving India.

Gavankar said caps on money prohibit the same even if someone changed citizenship.

An Indian citizen residing in India can only take out $250,000 per year, while a non-resident is allowed $1 million , Gavankar pointed out.

But others say the HNI exodus is slowing.

The Times of India quoted a report by Henley & Partners last year as showing that though 4,300 high net-worth individuals (HNIs) were projected to leave in 2024, that number was down significantly from previous years.

With inputs from agencies