Ashraf Engineer
June 7, 2025
EPISODE TRANSCRIPT
Hello and welcome to All Indians Matter. I am Ashraf Engineer.
It seems that a large number of India’s wealthiest are leaving or want to leave the country. A recent study by wealth management firm Kotak Private and the consultancy EY shows that at least 22% of super-rich Indians wish to leave due to factors like poor living conditions, a better standard of life abroad, better healthcare and an easier business environment.
If it’s not the individuals themselves, many are transferring their wealth abroad. For example, it was reported that India’s richest individual, Reliance Industries Chairman and Managing Director Mukesh Ambani, was setting up a branch of his family office in Singapore. He is not the only person to do so.
As of 2023, there were 2.83 lakh Indians who could be classified as ultra high net worth individuals, or UHNIs. Each had a net worth of more than Rs 25 crore and their aggregate wealth was estimated at Rs 2.83 lakh crore. By the end of 2028, the number of UHNIs is expected to grow to 4.3 lakh with a collective wealth of Rs 359 lakh crore.
Despite all the data about cost of living and unemployment, the government repeatedly asserts that India is booming. India’s richest simply don’t seem to share that confidence.
SIGNATURE TUNE
I cited some reasons earlier why the rich are leaving. In addition to those, education is a priority. UHNIs want to equip their children with global exposure and capabilities. So, in 2024, 13,33,000 students left India to pursue educational opportunities abroad, said the Kotak-EY study.
Other factors include lower taxes, better economic opportunities and political stability. Another report by Henley & Partners in 2024 said resilience to climate change is becoming an important consideration for the ultra-rich as is the need to protect wealth for the generations to come. India ranked third when it came to millionaire migration, after China and the UK, according to the Henley & Partners report. Other countries with a large number of millionaires leaving were South Korea, Russia, Brazil, South Africa, Taiwan, Nigeria and Vietnam. The top 10 countries in terms of net inflows of millionaires for 2024 were the UAE, the US, Singapore, Canada, Australia, Italy, Switzerland, Greece, Portugal and Japan.
Where are Indian UHNIs headed?
The Kotak-EY survey said ease of doing business abroad and low taxes are key drivers. It called the decision to migrate an “investment in the future”. So, many like the United Arab Emirates. It has a zero income-tax policy and a low 5% value-added tax on goods and services. Other destinations include Australia, Singapore, the US and Switzerland.
The report said UHNIs preferred aggressive equity investments, with a third holding investments mainly in the US and the UK. Real estate and mutual funds are popular choices. UHNIs are also focusing on lifestyle, with 7% of their spends on foreign leisure travel. They are also buying home fitness solutions, reflecting a broad focus on wellness. In fact, wellness emerged as a significant theme in the Kotak-EY report.
Of course, many countries have launched specific programmes to attract the wealthy. These include the so-called golden visas and citizenship through investment.
The fact is that many Indians have become disillusioned with the politics of the last decade and the underwhelming economic performance of this government. For the longest time, despite India being poorer than the West and other regions, it was where the heart was. Now, that’s changing. India seems to be struggling at a social and political level and the economy has not done as well as it could have.
Coming back to the quality of life, the pathetic urban infrastructure, the poor law and order in many regions and the alarming pollution are real concerns for the rich. Indian roads are in poor condition and urban roads are often choked. India has the largest number of the world’s most polluted cities. These lead to serious social and health consequences.
The cities are densely populated and offer little respite in the form of open spaces. Often, it’s impossible to even walk on footpaths due to encroachment or their poor quality.
The trauma of unending bureaucratic hurdles can drive anyone up the wall and out of the country. At the political level, the divisiveness of the past decade, identity politics and bungling governance are cause for disillusionment. Our legal system is jammed; cases can go on for decades without resolution and contract enforcement is a challenge.
These are some of the many reasons, the rich want to leave. And they have the means to do so.
While he has cited no reasons, among those that have decided to move are cricketer Virat Kohli and his wife, actor Anushka Sharma, and their children. The leading lights of the film industry have property in Dubai, the US and England already.
The costliest real estate in places like Mayfair in London, UAE, Bali and other places is often owned by Indians now. These include business tycoons and others from the glamour world. This signifies that many UHNIs are disconnecting from their roots to become part of an altogether new social and cultural world.
Between 2011 and 2023, more than 16 lakh Indians surrendered their citizenship to take up citizenship in 135 countries. This indicates that they wanted to leave India at any cost and settle anywhere else they could. It’s no wonder migration advisory firms are popping up like mushrooms.
Ultimately, the migration of UHNIs could have a long-term impact on the Indian economy. These individuals contribute majorly to the GDP, tax revenues and job creation. Their departure means a significant shift in investment, with more wealth leaving the country than being managed here.
Most importantly, it’s a telling indictment of the state of the nation.
Thank you all for listening. Please visit allindiansmatter.in for more columns and audio podcasts. You can follow me on Twitter at @AshrafEngineer and @AllIndiansCount. Search for the All Indians Matter page on Facebook. On Instagram, the handle is @AllIndiansMatter. Email me at editor@allindiansmatter.in. Catch you again soon.
