COVID may have put international travel on hold, but it has not stopped High Net Worth Individuals (HNWIs) in India from expanding their businesses overseas. Diversifying funds, reducing risks from singular markets, and taking advantage of new visa routes are just some of the reasons as to why many Indian entrepreneurs are using citizenship-by-investment and residency-by-investment programmes.
*63% rise in enquiries by Indian clients since 2019
Top Citizenship by Investment programmes include Austria, Malta and Turkey amongst Indian clients
Around 7,000 HNWIs in India left the country in 2019
*Times Of India, 2020
Historically, Canada, Australia and the UK have seemed very attractive to Wealthy Indian Businessmen, but with high investments required for Permanent residency, more obstacles occurred for them to diversify their businesses. However, due to Brexit, new visa routes such as the UK Sole Representative Visa programme, zero investments required with permanent residency became the perfect opportunity. This is why over 2% of India’s super rich have left.
But these are not the only factors to why they are leaving. Whenever there is an opportunity to make a living, people get there. Saving on tax, family safety, but most importantly – doing business in India is incredibly difficult. Different law structures of states, hurdles in international trade, the investment climate of India and poor infrastructure are the biggest reasons why doing business isn’t easy in India. The time, effort and money required to even get consent from the government to open your business seemingly outweigh the positives.
So, diversifying financial portfolios, businesses and lives across the globe seem to be the way forward for wealthy Indians, and many other nationalities too. Keeping your options open can pave the way for financial freedom.