2.16 lakh gave up Indian citizenship in 2023: What's behind this exodus?

In 2023, the number of Indians who renounced their citizenship stood at 2,16,219 (2.16 lakh).

Over 2.16 lakh Indians renounced their citizenship in 2023, according to data presented in the Rajya Sabha. The figure has been steadily increasing over the past few years, raising concerns about the factors driving this trend. 
 

The corresponding figure for 2022 was 2,25,620 (2.25 lakh); 1,63,370 (1.63 lakh) in 2021; 85,256 in 2020; and 1,44,017 (1.44 lakh) in 2019, according to the data.

While the government maintains that personal reasons are the primary motivation for such decisions, experts point towards economic opportunities, better living standards, and educational prospects abroad as potential contributing factors.

The government has acknowledged the potential of the Indian diaspora and is working to harness their expertise and resources. The Henley Passport Index recently released a comprehensive list of the most powerful passports in the world. Singapore dethroned Japan as #1 and India stood at 82nd.

 

An Indian passport holder can travel to the following 58 countries visa-free:

Angola, Barbados, Bhutan, Bolivia, the British Virgin Islands, Burundi, Cambodia, the Cape Verde Islands, the Comoro Islands, the Cook Islands, Djibouti, Dominica, Ethiopia, Fiji, Grenada, Guinea-Bissau, Haiti, Indonesia, Iran, Jamaica, Jordan, Kazakhstan, Kenya, Kiribati, Laos, Macao (SAR China), Madagascar, Malaysia, the Maldives, the Marshall Islands, Mauritania, Mauritius, Micronesia, Montserrat, Mozambique, Myanmar, Nepal, Niue, the Palau Islands, Qatar, Rwanda, Samoa, Senegal, Seychelles, Sierra Leone, Somalia, Sri Lanka, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Tanzania, Thailand, Timor-Leste, Trinidad and Tobago, Tunisia, Tuvalu, Vanuatu, and Zimbabwe.

198 passports and 226 destinations are measured using the number of countries the passport holder can access without a visa, the country's diplomatic relations with other countries, and its international agreements.

Why does a passport ranking matter?

"The strength of a nation’s passport has become a critical indicator of its global influence and economic potential. Governments can strategically enhance their passport power, unlocking unprecedented opportunities for their citizens and economies. The ability to travel visa-free to a wide array of destinations is no longer merely a convenience — it’s a powerful economic tool that can drive growth, foster international cooperation, and attract foreign investment," said Dr. Juerg Steffen, FIMC,  Chief Executive Officer of Henley & Partners.

At the heart of passport power lies an intricate web of visa waiver agreements between nations. These agreements are far more than diplomatic niceties — they are the lifeblood of global mobility and economic interconnectedness.  Henley & Partners research has shown a strong correlation between a country’s visa-free score and its economic prosperity. Nations with higher visa-free scores tend to enjoy greater GDP per capita, increased foreign direct investment, and more robust international trade relationships.

"The UAE stands as a shining example of what can be achieved through a focused and strategic approach to enhancing passport power. Over the past 18 years, the Emirates has catapulted its passport from a modest 62nd position on the Henley Passport Index to an impressive 9th place in the latest July 2024 ranking. This meteoric rise is not a matter of chance but the result of deliberate and concerted efforts by the Emirati government to forge strong diplomatic ties and negotiate favorable visa waiver agreements," said Steffen. 

What about India? 

"Indian citizens have suffered a dip in their global mobility this year, with India dropping from 80th to 82nd place on the Henley Passport Index between January and July. The reality of having visa-free access to just 58 destinations is just one of the reasons driving the significant increase in awareness of and demand for global investment migration opportunities among Indian high-net-worth families," said Rohit Bhardwaj, Director Private Clients and Country Head India at Henley & Partners, based in the Delhi National Capital Region, India.

In addition to having a contingency plan in place and enhancing their visa-free travel, among the key reasons Indian families consider alternative residence and/or citizenship is ease of access to excellent higher education institutions for their children. India’s affluent are not just looking to protect their wealth — they are strategically investing in countries that offer a robust educational infrastructure. Indian students constitute the biggest share of those studying internationally in the world after China — with an estimated 1.5 million studying elsewhere.

USA the top choice

The USA is the country that attracts the highest number of Indian students globally. Likewise, the US EB-5 Immigration Investor Program is a popular choice among Indian investors, who rank 3rd globally (after China and Vietnam) in terms of the number of visas issued to date in 2024. A significant underlying motivator for wealthy Indian parents whose children aspire to attend prestigious universities is to secure a future without visa complexities after they graduate. 

"Consider an Indian high-net-worth investor securing their child access to an Ivy League US college. The four-year degree could cost USD 250,000. But graduating with permanent residence rights in the USA multiplies career upside, given that America’s median salaries are 32 times higher than India’s, and tech sector equity compensation potential is exponentially greater in Silicon Valley. 

Gaining US work rights via the US EB-5 Immigrant Investor Program requires an investment of USD 800,000. Compared to the lifetime earning potential for the family and future generations, that is an insignificant investment in residence and, potentially, citizenship privileges for capitalizing on the American Dream. The power of education and expanded access is clear," noted Bhardwaj.

Climate crisis a growing driver

Climate change and global warming are among the most significant challenges the world faces today. North India has seen unprecedented heatwaves this year, with temperatures in many places exceeding 50⁰ C during the day and not cooling sufficiently at night, to the detriment of the population. This raises the question of whether major cities in India such as Delhi, Mumbai, and Bangalore will be livable in next 10 years. 

"Since mid-2024 we have seen a spike in enquiries from high-net-worth Indian families who cite climate risk as one of the key factors for evaluating investment migration options as a back-up plan, and while it remains to be seen if this trend continues, it is most likely given that these extreme heatwaves are occurring more frequently, lasting longer, and becoming hotter each year," said Bhardwaj.

Economic Opportunities

Better Job Prospects: Many skilled professionals, particularly in the IT and engineering sectors, find more lucrative job opportunities and career growth prospects abroad.
 

Higher Salaries: Developed countries often offer significantly higher salaries and better compensation packages compared to India.   
 

Entrepreneurial Climate: The startup ecosystem in countries like the US and UK is more conducive to innovation and business growth, attracting Indian entrepreneurs.
 

Quality of Life

Education: Access to world-class education for children is a primary motivator for many families.
 

Healthcare: Advanced healthcare facilities and better medical infrastructure in developed countries are a major pull factor.
 

Safety and Security: Concerns about personal safety and security can influence the decision to emigrate.
 

Political Climate: Political instability or uncertainty can sometimes push people to seek stability abroad.
 

Family Reunification: Joining family members already settled in foreign countries is another reason for migration.
 

Tax Benefits: Favorable tax regimes in certain countries can be an incentive for high-net-worth individuals.

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