In recent years, a growing number of India’s wealthiest individuals—business tycoons, celebrities, and high-net-worth entrepreneurs—have been quietly (or not so quietly) packing their bags and moving abroad. From Dubai and Singapore to the US and Europe, the global elite is witnessing an influx of Indian millionaires and billionaires seeking new horizons. But why?
Is it about better opportunities, or is there a deeper discontent driving this exodus? Are India’s high taxes, complex regulations, and unpredictable policies pushing its richest citizens away? Or is it simply the allure of a more luxurious, stable, and global lifestyle that India—despite its booming economy—still struggles to provide?
This trend isn’t just about personal choices; it has serious implications for India’s economy. When the ultra-rich leave, they take their wealth, investments, and job-creating potential with them. Some argue this brain (and money) drain could slow India’s growth, while others believe it’s a natural consequence of globalization.
In this blog, we’ll dive deep into the reasons behind this migration, from tax burdens and political concerns to better education for kids and premium global citizenship programs luring India’s elite away. Are these departures a sign of India’s systemic failures, or just the inevitable result of a wealthier class seeking global mobility? Let’s explore.
Key Findings from the Kotak Mahindra Bank Survey
A recent survey conducted by Kotak Private, a leading wealth manager, in partnership with consultancy firm EY, reveals that a significant number of India’s ultra rich are considering leaving the country. An astonishing 22% of these high-net-worth individuals express a desire to relocate, citing reasons such as superior living standards, better quality of life, and more favorable business conditions overseas.
The survey highlights that career-driven professionals are more likely to consider relocating abroad compared to business owners or heirs of family wealth. Interestingly, the desire to migrate is strongest among two age groups—UHNIs between 36-40 years old and those aged 61 and above.
Why Are Wealthy Indians Leaving India?
A. Taxation and Financial Reasons
- High tax burden: India’s top income tax slab is ~39%, while countries like the UAE and Singapore offer zero income tax in some cases.
- Capital gains tax, inheritance tax fears: Wealthy individuals worry about increasing scrutiny on offshore assets and potential wealth taxes.
- Easier business setup: Dubai and Singapore offer faster business approvals, better banking facilities, and global market access.
B. Education and Lifestyle
- Better education: Countries like the US, UK, and Canada have top-ranked universities, making them attractive for families.
- Healthcare & safety: Western nations and Singapore offer superior healthcare, cleaner cities, and lower pollution.
- Luxury living: Dubai and Singapore provide high-end real estate, luxury amenities, and global exposure.
C. Political and Economic Stability
- Policy unpredictability: Frequent tax law changes (e.g., retrospective taxes, GST complexities) create uncertainty.
- Currency depreciation: The rupee’s decline against the dollar makes foreign assets more appealing.
- Ease of global mobility: A second passport (via investment migration) allows visa-free travel and global residency.
D. Security and Privacy Concerns
- Fear of extortion/kidnapping: Some UHNWIs feel unsafe due to rising inequality and crime.
- Data privacy issues: Increasing financial surveillance (e.g., tax raids, AIS scrutiny) pushes wealthy Indians to move capital abroad.
Where Are They Moving?
A. Dubai & UAE (Most Preferred)
- No income tax, golden visa (10-year residency), luxury real estate, and proximity to India.
- Dubai’s business-friendly policies attract entrepreneurs and investors.
B. Singapore
- Low taxes, strong legal system, top-tier schools, and a hub for wealth management.
- Preferred by professionals and business families.
C. USA, UK, Canada, Australia
- Education-driven migration (Ivy League, Oxford, etc.).
- EB-5 visa (USA) and investor visas (UK, Canada) facilitate residency.
D. Europe (Portugal, Malta, Switzerland)
- Golden visa schemes (real estate/investment-based residency).
- Switzerland for banking secrecy and stability.
Impact on India
- Brain & wealth drain: Loss of entrepreneurs, investors, and skilled professionals.
- Reduced FDI: Wealthy Indians setting up businesses abroad instead of in India.
- Real estate & luxury market hit: Decline in high-net-worth property buyers.
Will This Trend Continue?
Yes, unless India addresses:
✔ Tax reforms (lower rates, simpler compliance).
✔ Better education & healthcare infrastructure.
✔ Ease of doing business & policy stability.
✔ Safety & quality of life improvements.
Final Thoughts
The exodus of wealthy Indians is driven by a mix of financial, educational, and lifestyle factors. While countries like the UAE and Singapore actively attract them with tax incentives and residency programs, India needs policy reforms to retain its elite class.
