Why India’s Rich Are Taking Their Money Abroad (Legally)

India is racing ahead with an 8.2 percent GDP growth, booming startups, and the world’s fastest-growing middle class. Yet, while the nation’s economy expands, its wealthiest citizens are quietly expanding elsewhere.

According to the Kotak Private Banking–EY 2023 report, over one in five ultra-high-net-worth Indians (with assets above ₹25 crore) are either migrating abroad or planning to. This isn’t a tax rebellion. It’s a silent reshaping of where India’s fortunes live.

Here’s what’s really happening behind this wealth migration — and what it says about the country’s future. The modern Indian entrepreneur builds empires at home but manages wealth overseas. Under the Liberalised Remittance Scheme (LRS), outward remittances jumped to 27.14 billion dollars in FY2022–23, a 38 percent rise from the year before.
Much of this money is directed into real estate, global startups, and offshore trusts — not shell games, but structured security. Family offices in Dubai, Singapore, and London are the new vaults of Indian enterprise. India’s wealthy are not just seeking luxury; they are seeking predictability. The Kotak-EY survey found their top reasons for leaving include better infrastructure, healthcare, education, and simpler taxation.
A 42.74 percent effective personal tax rate for top earners, frequent legal changes, and complex compliance systems make expansion cumbersome.
By contrast, Dubai offers zero income tax. Portugal offers a decade of tax relief. The choice becomes less about patriotism and more about practicality. India’s entrepreneurs are restless visionaries. They build, sell, and build again — often across borders.
Kunal Shah founded CRED after Freecharge, Bhavish Aggarwal moved from Ola to electric vehicles and AI, while Vijay Shekhar Sharma’s Paytm became a global fintech player.
According to Kotak, 67 percent of wealthy Indian entrepreneurs plan to reinvest in new ventures post-exit, often through offshore holdings or partnerships abroad. India is the workshop. The world is the marketplace. India’s business dynasties are no longer confined to family estates. They are now family networks across continents.
Mukesh Ambani built Reliance into a tech-retail empire, while his daughter Isha expands it globally. The Birla and Godrej families manage companies that blend Indian markets with overseas operations.
What began as industrial inheritance has evolved into international wealth architecture — where succession is managed through trusts, global advisors, and citizenships that open new doors for the next generation. Falguni Nayar turned Nykaa into India’s first woman-led unicorn. Kiran Mazumdar-Shaw made Biocon a biotech powerhouse exporting to 120 countries. Nisaba Godrej reshaped legacy business with sustainability and digital strategy.
They represent a new power shift: women who are not just keeping inherited wealth, but multiplying it across borders. They make India’s growth story global, not just domestic. India is witnessing not just a brain drain, but a wealth drain. The Henley Global Citizens Report 2023 placed India second worldwide for millionaire migration, with 6,500 millionaires leaving in 2023 alone.
Many head to UAE, Singapore, the UK, and Portugal — not to hide money, but to secure it. And this flow is accelerating, even as India’s unicorn count rises. The paradox deepens: the more India grows, the more its fortunes move. GDP numbers tell one story. But what they hide is another — a lack of trust.
India ranks 96th on Transparency International’s Corruption Perception Index, has over 52 million pending court cases, and spends just 2.1 percent of GDP on healthcare.
For the rich, these are not statistics. They are reminders that prosperity is fragile without protection. So they build their wealth here, but insure it elsewhere.