OPINION | Golden Visas and Residency: India’s growing influence in global diplomacy

Residency and citizenship programmes have evolved into tools of diplomacy and economic strategy. By offering residency rights in exchange for investment, countries can attract capital inflows, create jobs, and boost local economies. At the same time, they gain influence by tying wealthy and talented foreigners to their societies.

For India, this dynamic is particularly significant. The Indian diaspora is already one of the largest and most influential in the world, contributing billions of dollars annually through remittances and playing an outsized role in politics, academia, and technology globally. When countries create special pathways for Indians, they are not just attracting money—they are tapping into a network of global connectors who shape innovation and commerce.

Why Indian Capital is So Attractive

India has produced a new generation of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) who are eager to diversify their assets and expand their global presence. Rising wealth in technology, manufacturing, and services has created a large class of globally mobile investors.

Many of these individuals see residency programmes as a hedge against uncertainties such as fluctuating markets, political risks, or regulatory changes at home. At the same time, families aspire to better educational opportunities, healthcare access, and the ability to travel more freely. Countries recognise this demand and compete to offer residency frameworks that combine lifestyle appeal with financial security.

The Golden Visa Boom

Golden Visas have become the most visible symbol of this competition. Nations like Portugal, Spain, and Greece pioneered such programmes by granting residency to foreigners who invest in real estate or government-approved funds. Others, such as the UAE, offer long-term residency permits to investors, professionals, and even cultural figures.

For Indians, these programmes offer multiple benefits. Residency in Europe can serve as a gateway to the entire Schengen area, providing mobility and business access across 27 countries. In the Gulf, long-term visas allow Indian business families to secure their operations in regions where they have historic trade ties. The attraction is not just financial but also cultural and social, giving Indian families a sense of permanence in their chosen hubs.

Talent as a Strategic Asset

While investment-driven programmes attract headlines, talent-driven visas are equally critical. Countries like Canada, Australia, and the UK actively recruit Indian professionals in technology, healthcare, and finance. These nations recognise that skilled Indian workers not only contribute economically but also enrich cultural diversity and strengthen long-term ties.

This talent migration, however, creates a double-edged sword for India. On the one hand, Indian professionals gain global exposure, higher salaries, and expanded opportunities. On the other hand, the “brain drain” challenge persists, as India loses some of its most capable minds to foreign economies. Yet, these same professionals often remain connected to India through remittances, investments, and even knowledge transfer, making the relationship more complex than a simple loss.

India’s Economic Positioning in the Global Race

The competition for Indian capital and talent has broader implications for India’s own economic positioning. As more Indians gain residency abroad, they bring with them investment habits, business connections, and cultural influence that often circle back to India. This cycle can boost bilateral trade, create new opportunities for Indian startups, and improve India’s visibility in global policy circles.

At the same time, it raises questions about how India itself should position its economy. Should the country focus on retaining talent, or should it embrace the idea of a global Indian community as an asset in its foreign policy? Increasingly, policymakers see the diaspora as an extension of India’s soft power, one that can shape technology flows, diplomatic goodwill, and even geopolitical leverage.

Diplomatic Leverage Through Migration

Residency programmes have diplomatic consequences as well. When large numbers of Indians invest in European, Middle Eastern, or North American markets, they create new avenues for influence. Governments of host countries often take notice of these wealthy residents and professionals, which can translate into stronger bilateral ties.

For example, Gulf states have deepened their relationship with India partly because of the massive Indian diaspora that contributes to their economies. Similarly, in the US and Canada, Indian-origin professionals have gained political clout, with several entering prominent public offices. This demonstrates how residency and migration can evolve into long-term strategic partnerships that extend beyond economics.

The Domestic Challenge for India

Despite the benefits, India faces a delicate balancing act. Wealthy families moving capital abroad can create concerns about capital flight. Professionals leaving the country raise fears of a talent vacuum. At the same time, there is pressure to ensure that global mobility does not exacerbate inequalities at home, where access to high-quality education and healthcare remains uneven.

India’s challenge is to craft policies that both encourage global engagement and strengthen domestic opportunities. Initiatives to support startups, improve infrastructure, and expand research and development could make staying in India equally attractive, even for those with global ambitions.

Future of Residency Competition

Looking ahead, the competition for Indian capital and talent is only set to intensify. As India’s middle and upper classes continue to grow, more families will explore residency options abroad. Simultaneously, countries facing demographic decline or economic slowdowns will double down on attracting migrants who can bring fresh energy and investment.

However, the success of these programmes will not depend solely on financial incentives. Quality of life, stability, education, healthcare, and cultural acceptance will remain decisive factors for Indian families choosing where to establish secondary residencies.

Toward a Balanced Global Role

Residency programmes highlight a new dimension of soft power in the 21st century. For India, the growing demand for its talent and capital reflects its rising status on the global stage. Rather than viewing this as a challenge, India can treat it as an opportunity to expand its influence.

By engaging strategically with countries that court Indian investors and professionals, India can ensure that its diaspora becomes an asset in advancing economic and diplomatic interests. Whether through bilateral trade agreements, cultural diplomacy, or global business partnerships, residency trends can be harnessed for mutual benefit.

Conclusion

Residency and Golden Visa programmes are no longer just personal choices for wealthy or skilled Indians. They are part of a broader global competition where countries seek to attract resources, ideas, and influence. For India, this competition reflects both opportunities and challenges. On one side lies the chance to build soft power through its diaspora; on the other, the risk of losing valuable talent and capital. As the world reconfigures its economic and demographic strategies, India’s ability to balance domestic development with global engagement will determine whether residency becomes a source of strength or vulnerability. Ultimately, the growing global demand for Indian capital and talent signals a new era—where the passport and residency card are not just travel documents but instruments of international power and diplomacy.

(Varun Singh is MD, XIPHIAS Immigration.)

Views are personal and do not represent the stand of this publication.