In recent years, India has consistently ranked among the countries with the highest number of millionaires migrating abroad. This trend has raised questions about the driving factors behind this phenomenon, its implications, and what it means for the country’s economic future. Here, we explore the reasons behind this migration and its broader significance.
India’s high-net-worth individuals (HNWIs)—those with assets worth $1 million or more—are leaving in significant numbers. According to reports, tens of thousands of Indian millionaires have moved to countries like the United Arab Emirates,Singapore, Australia, the United States, Canada, and European nations over the past decade. While India remains one of the fastest-growing economies in the world, the allure of opportunities abroad has led to this exodus.
Key Reasons Behind Millionaire Migration
1. Taxation and Regulatory Challenges
India’s complex tax system, combined with frequent regulatory changes, can be a deterrent for HNWIs. The taxpayers get nothing in return even after paying taxes like developed countries. Countries with more favorable tax regimes, such as zero-income-tax nations like the UAE or low-tax nations like Singapore, often attract wealthy Indians who wish to protect and grow their wealth with fewer restrictions.
2. Quality of Life
Countries like Canada and Australia are known for their high standards of living, excellent healthcare, modern infrastructure, and clean environments. For many millionaires, these factors play a significant role, as they seek a more comfortable and secure lifestyle for themselves and their families.
3. Political and Economic Stability
Concerns over political instability, corruption, and inconsistent policy-making in India have driven some wealthy individuals to look for countries with predictable governance and economic stability.
4. Better Education for Children
Access to world-class education for their children is a major motivation. Wealthy families often move to countries with prestigious universities, better schooling systems, and international career opportunities, ensuring a bright future for the next generation.
5. Diversifying Assets
For HNWIs, diversification of wealth is crucial. Living in a country with a strong currency, advanced financial systems, and stable property markets allows them to spread their investments and reduce risks tied to one economy.
It is high time that our Government should focus on these issues to slow down this migration.