Immigration: Where are Indians moving and why?

“The immigration numbers of Indian immigrants to countries like the US have been higher in 2023. The US figure is significantly higher than the UK because the US economy is much larger. Figures released in November 2023 by the UK’s Office for National Statistics show that the top non-European Union (EU) nationality for immigration into the UK was Indian (253,000). In the first six months of 2023, 84,000 Indians immigrated to Canada. Indian migration to the European Union (EU) has risen consistently since 2008 but is less than Indian migration to English-speaking nations,” Yash Dubal, Director and Senior Immigration Associate, A Y & J Solicitors, London (UK), said.

But things might change. “In the UK, the government is currently introducing measures designed to significantly reduce the number of migrants coming to the UK after the latest figures showed that net migration was at a historic high point of 745,000 for 2023,” Dubal added. With Australia announcing its new Migration Strategy, 2024 might see a change in the migration destination for Indians.

Where are HNWIs going?

In 2022, about 7,500 HNWIs left India, and according to the Henley Private Wealth Migration Report, another 6,500 were estimated to leave India in 2023 (the final migration numbers are not out yet). Dubai and Singapore will be the popular closest destinations while the United States would be the first option when looking West. Mature/elderly Indian HNWIs prefer Europe, the UAE, and Singapore while the younger investors who have been educated or lived long in the US prefer the EB-5 program.

With government-administered Golden Visa programme, favourable tax environment, thriving business ecosystem, and safe atmosphere, Dubai is emerging as a favourite for Indian HNWIs. The proximity (it is a 3.5-hour flight from India) is another big reason.

Portugal, Germany and Austria have recently concluded agreements on migration and mobility with India. These agreements might shift migration patterns.

Where are Indian students going?

India remains the largest student-sending market for several countries. The number of Indian students enrolled in studies abroad is expected to climb from roughly 1 million as of 2019 to 2 million by 2025, according to an analysis of Indian student mobility produced by University Living, Beyond Beds and Boundaries: Indian Student Mobility Report 2023. The report found that direct spending on study abroad by Indian students amounted to US$47 billion for 2022, a sum that is expected to climb to as high as US$70 billion by 2025 based on current growth rates.

The traditional international education powerhouses of the United States, United Kingdom, Canada, and Australia continue to be highly appealing to Indian students.

In the UK, Indian students account for 42 percent of all Graduate Route grants and received nearly 143,000 study visas in the year ending June 2023.

The United States has seen a 63 percent increase in Indian graduate students, reaching 165,936 students, and a 35 percent overall increase in Indian international students, setting a record at 268,923 in 2022/23.

Australia, too, witnessed a significant surge, with Indian student numbers up by 34 percent in the first eight months of 2023. At the end of December 2022, there were nearly 320,000 Indian students with active study permits accounting for 39.5 percent of Canada’s total foreign enrolment (Source: University Living).

Alternative study abroad destinations: Traditional study destinations remain popular, but what are the other emerging destinations?

“France is actively welcoming Indian students, with the aim of hosting 30,000 by 2030. Germany, known for its affordability and excellent education system, has seen a remarkable 107 percent increase in Indian students in the past four years. Spain, too, is witnessing a surge in Indian students - in a matter of three years, international student numbers in Spain have increased by approximately 12 percent,” Saurabh Arora, Founder & CEO, University Living, said.

“These are not the only emerging destinations. Singapore's exponential growth, from 1,500 to 10,000 Indian students within a year from July 2021 to March 2022, demonstrates its appeal as an educational hub. Dubai's burgeoning Indian student population, particularly in primary and secondary education, mirrors the growing opportunities in the UAE.

"New Zealand and Ireland are also witnessing spurt in Indian students’ enrolment,” added Arora.

Perhaps a big surprise is Malta. According to Arora, Malta’s English language training sector is rebounding nicely from pandemic losses. In 2022, the total volume of student weeks was higher than in 2019 or in any year before that. Enrolments grew by 103 percent over 2021 but are still off pre-pandemic levels.

Foreign countries with the highest number of Indians

The top 10 countries with the highest Indian population outside of India are: The United States, The United Arab Emirates, Malaysia, Saudi Arabia, Myanmar, Canada, Australia, The United Kingdom, South Africa, Singapore.

Renouncing Indian Citizenship

In 2022, a total of 2,25,620 persons had given up their Indian citizenship, highest in the last 12 years. Till June 2023, 87,026 Indians had given up their citizenship. These individuals moved to 135 countries. While the yearly data prior to the pandemic hovered around less than 1.5 lakh, it showed a saw a sharp jump after the pandemic at 225,620 persons giving up their citizenship in 2022, according to the Ministry of External Affairs.

India does not allow dual citizenship, and the citizenship renunciation data is also indicative of how many people took citizenship of other countries in this time.

Renouncing Indian Citizenship (Source: MEA)

Why are HNWI Indians moving abroad? The number of high-net-worth individuals (HNWIs) in Indian is expected to reach 1.65 million by 2027, compared with nearly 800,000 in 2022. And a fraction of them will be looking to leave the country soon. But why are they moving?

The big reasons are: India’s tax regime is considered severe, rules about remittances are harsh, overseas’ passports offer greater mobility (as per the Henley Passport Index 2023, Indian passport is ranked 80th along with Senegal and Togo, with visa-free access to 57 countries), and the higher standard of living in some countries, including better education and health care, more reliable infrastructure, cleaner air, and a better all-round lifestyle. Better education opportunities for children is one of the biggest reasons for Indians to move to another country.