Affluent citizens of India are leaving India. According toGlobal Wealth Migration Review, 2% of those with a valuation of 1 crore Rupeeshave left India.
Henley and Partners claim that in 2020 vs 2019, 63% moreIndians enquired about leaving the nation.
However, due to the curbs on international air travel andlockdown restrictions, processing of the documents has slowed down. In 2020,about 5,000 – 6,000 wealthy people left India.
However, this number may increase rapidly in 2021.
According to sources, the number of enquiries has increasedin the second wave of COVID. In 2021, more affluent people may leave thecountry.
Earlier, between 2015 and 2019, more than 29,000 richindividuals gave up their Indian citizenship.
According to the report by Henley and Partners, Indiansenquired the most about Canada, Portugal, Austria, Malta, Turkey, the USA, andthe UK. This indicates that more Indians are looking for their way out of thenation.
Crores required to move abroad
There are two primary ways to move abroad. By making amassive investment in a specific country migration there can be arranged; orthere are some nations where a huge one-time fee can be paid to buycitizenship. Most Indians prefer the former option.
For example, to settle in America, Indians require GreenVisa. For this, investment of Rs 6.5 crore is required. England requires 18crore Rupees of investment, New Zealand requires 10.9 crore of investment.There are some nations like Saint Kitts and Nevis; and Dominica whererelatively lesser investment of up to Rs 72 lakh gets you the citizenship.
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Why the rich are leaving India? Difficult businessenvironment, healthcare, pollution, tax, and property litigations
Rajkumar Sablani, who migrated from Chhattisgarh to Jamaicatold a national daily that in India there is a lack of opportunities, politicalinstability, corruption, pollution, and related problems which force a personto leave the nation. He claims that he left India for these reasons.
Writer Vivek Kaul claims that those who leave India do nottake their entire business from here. Instead they stay for a few months abroadto qualify for the legal title of NRI (Non Resident Indian), and this theneliminates corporation tax on them.
Nibhay Handa, Director, Henley and Partners reveals that movingto another nation does not only mean buying a house there. With this action,the assets and liabilities of the person come under two legal jurisdictions. Inthe case of dispute, the multiple jurisdictions reap huge benefits as the lawof both the nations need to be honoured now.
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Drawbacks of the rich leaving India: Reduction in taxcollection and in jobs too
India’s employment rate is already barely adequate. In thisscenario when the rich take their business elsewhere, the unemployment ratehere increases.
Due to this, the gap between the rich and the poor willincrease. The wealthy leave the country to save huge amounts of tax. Thisaction reduces the amount of tax collection and hurts the economy of thenation.
On the other hand, in nations like Singapore, Hong Kong,Britain, Korea, the system of taxation is very simple. Thus, people leave theirown nation and move to these countries to establish their business.
However, a dispute is underway on social media regardingIndians leaving their nation. Three primary rationales are being put forwardfor this:
1. People want to do business. However, thegovernment and the circumstances of the country are not able to providereasonable opportunities to them. Thus, in search of business, they move tothose countries where tax rules are easier.
2. People are moving from here in search for abetter life. They have money, and they believe that healthcare, security, andeducation opportunities are better there than in India. Thus, they do not wantto stay here.
3. These people have done illegal activities intaxation etc to earn money. They are under fear of being caught here. Thus,they are fleeing from the nation.