In recent years, India has emerged as one of the world’s fastest-growing major economies, ascending to the fifth position in global GDP rankings in 2023. As a consequence of the meteoric growth of India’s economy, the population of high-net-worth individuals (HNWIs) in India is also on the rise.
HNWIs are individuals with investable assets of more than one million dollars. Currently, there are an estimated 344,600 HNWIs in India.
Riding high on surplus wealth, an increasing number of Indian HNWIs are seeking global mobility and are migrating to developed countries for better economic opportunities, access to world-class education and healthcare, and an overall improved quality of life.
Therefore, with the Indian economy booming, the outflow of HNWIs from India does not seem very concerning, as the country is producing far more millionaires than it is losing to migration. The loss due to wealth migration is also mitigated by the flow of remittances and international connections through trade, foreign direct investments (FDIs), and technological transfers from destination countries.
Reasons for Migration of HNWIs and the Most Popular Destinations
U.S. Citizenship via the EB-5 Program
Benefits of the EB-5 Visa
Reasons for Migration of HNWIs and the Most Popular Destinations
According to the report, in spite of the global economic growth stagnating, worldwide HNWI migration is set to increase from an estimated 122,000 in 2023 to 128,000 in 2024. Following China and India, the United Kingdom, Russia, and Brazil are also expected to have a significant outflow of HNWIs in 2024.
This trend can be explained by the fact that wealth migration is motivated largely by unfavorable conditions in source countries and favorable conditions in destination countries rather than by the health of the global economy. The most common reasons for HNWIs moving out to settle in foreign countries are political stability, social safety and security, ease of business, low taxation, better prospects for children, and personal freedom.
For Indian HNWIs, however, it is mostly prohibitive tax legislation coupled with difficulties relating to outbound remittances, complex socio-political dynamics, and the desire for higher standards of living that have led to their increased migration from India.
In the last few years, the top destinations for HNWIs migrating from India have been Australia, the UAE, Singapore, and the United States. Notably, all of these countries offer residence and citizenship by investment programs (also known as golden visa programs) in various attractive investment options.
Basically, a golden visa entitles qualifying candidates to full legal rights to live, work, study, and receive permanent residence benefits in the host country in exchange for a minimum capital investment.
Many golden visa programs allow the successful applicant to apply for citizenship after a few years of residence, such as the EB-5 Immigrant Investor Program of the United States.
U.S. Citizenship via the EB-5 Program
As the world’s leading economic power, the United States remains one of the most sought-after destinations for immigrant investors. Its popular EB-5 program is one of the best residency options for HNWIs, offering them a straightforward route to permanent resident status (Green Card) and U.S. citizenship in a short period of time.
The EB-5 program was introduced by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by immigrant investors. It enables foreign nationals and their eligible dependent family members (the spouse and unmarried children under 21) to obtain lawful permanent residency in the United States by investing in a commercial enterprise and creating 10 permanent full-time jobs for qualified U.S. workers.
The program is administered by the federal agency United States Citizenship and Immigration Services (USCIS).
Investment Capital Requirement
To qualify for the program, applicants must invest a minimum capital of $800,000 if investing in designated targeted employment areas (TEAs), i.e., rural and high-unemployment areas, or in specific infrastructure projects. The minimum capital investment for all other projects is $1,050,000.
Set-Aside Visa Quota
To attract investors to certain regions and projects, the program sets aside 32% of the total quota of EB-5 visas for investments in rural areas (20%), high-unemployment regions (10%), and developmental infrastructure projects (2%).
By investing in projects that qualify for the set-aside category, investors from high-demand countries such as India can skip the backlogged queue in the unreserved category and potentially obtain an EB-5 visa after approval of their EB-5 petition.
Concurrent Filing
Many Indians residing in the United States on temporary non-immigrant visas, such as the H-1B work visa, the F-1 student visa, or the L-1 visa, are increasingly transitioning to the EB-5 visa as a fast-track and direct route to permanent residency in the United States.
By using the EB-5 Concurrent Filing provision, which allows foreign nationals already residing in the United States on a non-immigrant visa to file Form I-485 for adjustment of status (AOS) while their EB-5 application is being processed, they can enjoy many benefits of permanent residency even before their petition is adjudicated.
With the EB-5 program undergoing extensive reforms with the passing of the EB-5 Reform and Integrity Act of 2022 (RIA), the demand for the EB-5 visa from Indian citizens peaked in FY 2022, reaching 1,381. This is an indication of the renewed trust of investors in the program, which is now even more attractive than ever.
Benefits of the EB-5 Visa
The EB-5 visa offers not just permanent residency to investors but an opportunity for their entire family to live the American Dream with endless possibilities in one of the most desirable business and lifestyle destinations worldwide.
EB-5 visa holders can freely live, work, study, and retire anywhere in the United States. They have access to all education, healthcare, financial, and pension benefits available to U.S. citizens.
Students holding an EB-5 visa are eligible to receive subsidized education at public schools and can enroll in some of the best universities in the world at a much lower cost than international students.
Green Card holders also have extensive international mobility through visa-free travel privileges.
If all eligibility requirements are met, EB-5 investors can apply for naturalization in as little as five years after receiving their conditional Green Card, making it one of the fastest routes to U.S. citizenship.
Despite increased investment requirements and processing challenges, the EB-5 program’s appeal continues to strengthen with Indian investors, reflecting their unwavering interest and adaptability.
Recognizing the demand, many EB-5 regional centers are offering projects suited to Indian investors who are often well-informed about their investment options.
As the Indian HNWI population continues to grow, a steady stream of wealthy investors migrating to new horizons is expected to persist in the years to come.
