Why are so many Indians renouncing their citizenship from Delhi, Punjab, and Gujarat?

A country with the largest diaspora population in the world, India saw 18 million of its people living abroad in 2020, according to a UN report. This vast migration trend has seen a recent, notable surge in the number of Indians renouncing their citizenship, particularly from states like Delhi, Punjab, and Gujarat. This phenomenon raises questions about the underlying causes driving these decisions.

According to recent parliamentary data, Delhi tops the list with 60,414 renunciations between 2014 and 2022, followed by Punjab with 28,117, and Gujarat with 22,300. This pattern has only intensified post-COVID, with Gujarat experiencing a dramatic rise in passport surrenders. In 2022, 241 individuals from Gujarat gave up their passports; by 2023, this number had doubled to 485. By early May 2024, the figure had already reached 244, indicating a continuing upward trend.

Economic and educational aspirations

A significant factor driving this trend is the pursuit of higher education and better career opportunities abroad. Many young Indians, particularly from Gujarat, seek advanced degrees in countries like the United States, the United Kingdom, Canada, and Australia. Once settled, the attractive job prospects and higher standards of living make returning to India less appealing.
According to the latest Education Ministry data, over 7.7 lakh Indian students went abroad to study in 2022 — a six-year high. Many of these students prefer to remain abroad, finding it challenging to secure comparable opportunities back home.

Business opportunities

For many Gujaratis and Delhiites, the decision to renounce their citizenship is also influenced by lifestyle factors. Urban congestion, inadequate green spaces, and the desire for better infrastructure drive many to seek a better quality of life overseas. Investor visa consultant Lalit Advani highlights a growing trend among businessmen relocating for these reasons.

The latest Henley Private Wealth Migration Report has supported this migration trend of the wealthy, predicting that 4,300 millionaires are set to leave India this year alone. While the number is smaller than usual (5,100 millionaires departed in 2023), India remains one of the top countries for high-net-worth individual departures globally.
The cumbersome process of securing business visas, such as the EB5 visa for the US, further complicates matters. Ritesh Desai, a passport consultant, notes the long wait times and financial requirements as significant deterrents. As a result, those with the means often opt to expedite their migration by renouncing their Indian citizenship and acquiring foreign nationality.

Further, under the Passports Act 1967, Indians who acquire foreign nationality must surrender their Indian passports. Early surrenders are penalty-free, but delays beyond three years can result in fines ranging from Rs 10,000 to 50,000. This legal requirement, coupled with the desire to avoid penalties, also contributes to the rising number of renunciations.

Quality of life and broader socio-economic factors

But the reasons behind this trend also extend beyond individual aspirations. The hopes of economic well-being, safety, better healthcare, and educational opportunities are significant motivators for Indians who move abroad and let go of their original citizenship. The Global Wealth Migration Review also highlights concerns such as safety for women and children, lifestyle factors like climate and pollution, and financial issues including taxes as key reasons for emigration.
Additionally, India's passport ranking on the Passport Index 2023 has seen a significant decline, standing at 144th with a mobility score of 70. This low ranking means limited visa-free travel options, making foreign passports more attractive.

As India continues to grapple with these socio-economic factors, the trend of seeking better opportunities abroad is likely to persist, reshaping the demographic and economic landscape of the country.