HNIs GOING WEST

Copyright infringement not intended

Context

• According to the Union Ministry of External Affairs, more than 2.25 lakh Indians renounced their citizenship in 2022, the number is the highest since 2011.
  • Recently, the Minister of state for external affairs informed the Lok Sabha that more than 16 lakh Indians have renounced their citizenship since 2011.

What does it suggest?

• The data suggest Indians, especially high net­worth individuals (HNIs), are moving to western countries in search of better opportunities, healthcare, quality of life, and education, among other factors.

High Net­worth Individuals (HNIs)

• HNIs are those who have wealth of over $1 million or ₹ 8.2 crore.
• According to the Henley Global Citizens Report, there were around 3.47 lakh HNIs in India in December 2021.
  • Of these, 1.49 lakh HNIs were found in just 9 cities: Mumbai, Delhi, Kolkata, Bengaluru, Hyderabad, Pune, Chennai, Gurugram, and Ahmedabad.
• According to the report, India ranked 4th in the world in terms of privately­ held wealth, after the U.S., China, and Japan.

Possible factors behind the trend

• Indian Industry representatives highlighted that several western countries have initiated “residence­ through ­investment” programmes to attract investment in their nation.
  • The U.S. EB­5 visa, Portugal Golden Visa, Australian Global Talent Independent Visa, Malta Permanent Residency Programme, and Greece Residence by Investment Programme.
• “Residence­ through ­investment” scheme benefits individuals and families, providing them with the right to live, work, study, or retire in western countries.
• A few years after the investment, the individual will be eligible for a passport from these countries, making them eligible to visit over 150 countries without a visa.
  • The majority of Western Countries ranked high in the Henley Passport Index which ranks the strongest and weakest passports globally.
  • Indian passport holders can access just 59 destinations worldwide.
• HNIs invest to give their children a better future in foreign countries.
• HNIs like business owners, entrepreneurs, and professionals such as doctors and engineers are also searching for better business opportunities outside India.
• Wealthy families aspire for better healthcare, open and flexible business environments, and access to better academic and professional opportunities.
  • The “residence­ through ­investment” programmes in several developed nations provide them with these options.

Must Read: https://www.iasgyan.in/daily-current-affairs/citizenship-15

https://epaper.thehindu.com/ccidist-ws/th/th_delhi/issues/25766/OPS/G0BAT9BJ1.1.png?cropFromPage=true