According to a recent report by the Ministry of External Affairs (MEA), more than 2.25 lakh people renounced their Indian citizenship in 2022, the highest number since 2011. The EAM mentioned that the lowest number was in the year 2020 when only 85,256 had renounced their citizenship in India. What’s interesting to note is that most of these individuals are high net worth individuals (HNIs) who are seeking better opportunities, quality of life, education, and healthcare in other countries.
In recent years, there has been a growing trend of HNIs moving to the west, especially to countries like the United States, Canada, the United Kingdom, and Australia. These countries offer attractive residency and citizenship options through investment plans and visas, which are highly sought after by wealthy individuals looking to secure their future and that of their families.
A break-up of data shows that in 2015 – 1,31,489 Indian renounced their citizenship, in 2016- 1,41,603 people gave it up, in 2017- 1,33,049 renounced, in 2018- 1,34,561 people, in 2019-1,44,017 renounced their citizenship, in 2020- 85,256 gave up, in 2021 -1,63,370 surrendered.
Minister of State for External Affairs V Muraleedharan said the Centre was aware of the issue of Indian professionals fired by US tech majors in recent months. Of these, he said, a certain percentage was likely to be Indian nationals on H-1B and L1 visas.
The minister said India has consistently raised issues relating to the movement of high skilled workers, including IT professionals, with the US. “It has also been working with various stakeholders, including industry organisations and business chambers on these issues,” he said.
The trend of HNIs renouncing their Indian citizenship is not surprising. India, like many other developing countries, faces numerous challenges such as poor infrastructure, a struggling economy, and a high crime rate, among others. HNIs, who have the means to secure a better future for themselves and their families, are naturally drawn to countries that offer a higher quality of life, better healthcare facilities, and better education opportunities for their children.
While the trend of HNIs renouncing their Indian citizenship is a cause for concern, it’s essential to recognize that this is a global phenomenon. Countries around the world are competing to attract HNIs with investment plans and visas, and many of them are succeeding. To remain competitive, India needs to take steps to address the challenges that are driving its citizens away.
One way to do this is by creating a more business-friendly environment that encourages entrepreneurship and innovation. India is home to a vast pool of talented and skilled professionals, and by providing them with the right infrastructure and support, the country can attract more investment and create more job opportunities.
Another area that needs attention is the education system. India has some of the best educational institutions in the world, but they are often inaccessible to the average citizen. By making education more affordable and accessible, India can retain more of its talented professionals and attract more HNIs who are looking for quality education opportunities for their children.
The trend of HNIs renouncing their Indian citizenship is a wake-up call for the government and policymakers. It’s essential to address the challenges that are driving HNIs away and create a more attractive business environment that encourages investment and innovation. By doing so, India can retain more of its talent and attract more HNIs who are looking for a better future for themselves and their families.
