Why Indian Millionaires Are Leaving the Country

Speedy Summary:

• India’s Economic Growth vs Wealth Exodus: Despite a growing millionaire population, India faces important annual outflow of High-Net-Worth Individuals (HNWIs), driven by domestic factors like tax scrutiny and formalisation efforts, alongside attractive overseas residency programs.
• UAE Golden Visa Rumors: UAE authorities denied claims about offering lifetime Golden Visas for ₹23 lakh under a pilot programme for Indians and Bangladeshis.
• Henley Migration Report Findings: India is among the top five countries losing millionaires annually-estimated 3,500 will emigrate in 2025-taking $26.2 billion with them.
• Preferred Destinations:

– UAE: Zero-tax regime and long-term visas continue to draw Indian wealthiest.
– USA: Popular due to pathways like EB-5 visa; buzz persists over Trump’s proposed $5 million Gold Card concept.
– Portugal: Features an attractive residency-to-citizenship pipeline despite recent reforms limiting real estate-linked investments.

• Key Push Factors for Migration:

– Increased tax pressures at home (tax recovery target set at ₹1.96 lakh crore in FY25).
– Economic formalisation via UPI transactions tied to PANs, GST tracking reforms, cryptocurrency taxation policies.
– Lifestyle aspirations such as visa-free travel opportunities and better healthcare abroad.Link to Full Article: Read More

Indian Opinion Analysis:

The outward migration of India’s ultra-rich poses interesting contrasts against its economic ascent demonstrated by the rapid increase in HNWI numbers (+72% from 2014-24). On one hand, stringent domestic tax enforcement alongside formalisation initiatives indicate progress toward institutional economic maturity but simultaneously alienate affluent individuals seeking financial ease or flexibility elsewhere.

The pull from global hubs such as the UAE highlights how strategic policy advantages-in this case zero taxes or streamlined visa frameworks-can make nations powerful contenders in wealth attraction while concurrently reshaping competitive dynamics globally.

For India’s policymakers, this dichotomy may necessitate balancing economic modernisation efforts with incentives or lifestyle benefits that appeal to its high-net-worth citizens lest talent drains hinder internal wealth compounding over time.