Why Don’t the Rich Want to Live in India Anymore?

India’s economic story is full of contradictions. On one side, the country is celebrated as the fastest growing major economy with GDP growth of 8.2 percent in FY2023–24, powered by manufacturing and services. On the other side, its wealthiest citizens, the very people who build businesses, create jobs, and put India on the global map, are quietly packing their bags.

A joint survey by Kotak Private Banking and EY found that more than one in five ultra high net worth individuals (those with assets above ₹25 crore or about 30 million dollars) are either migrating abroad or planning to do so.

This raises a serious question: if India is growing so fast, why are its wealth creators leaving?

The Kotak EY report highlights three main reasons.

• A better quality of life and infrastructure abroad
• Superior healthcare and education systems
• Friendlier taxation, legal, and business environments

These are not just luxuries. They are signals of frustration with core public services and weak policy support at home.

Outward remittances by wealthy Indians are rising sharply. Under the Liberalised Remittance Scheme, Indians sent 27.14 billion dollars abroad in FY2022–23, compared to 19.61 billion dollars the year before. That is a 38 percent jump.

A lot of this money is going into overseas real estate, education, and residency programs. While this secures a future for families abroad, it weakens private investment inside India, which is vital for job creation and innovation.

At the same time, foreign direct investment into India fell from 84.8 billion dollars in FY2021–22 to 71 billion dollars in FY2022–23. The wealthy are increasingly choosing more stable economies for their capital because they fear policy swings, unpredictable taxes, and weak institutions at home.

Corporate tax was reduced to 22 percent in 2019. But personal income tax remains punishing for high earners, with effective rates climbing to 42.74 percent for those earning over ₹5 crore annually.

The bigger issue is not just the rate. It is the complexity and unpredictability of the system. Frequent amendments, retrospective taxation, and unclear enforcement leave taxpayers unsure of the rules.

Compare this with Dubai, which has zero personal income tax, or Portugal, which offers ten years of tax exemptions under its NHR scheme. For the wealthy, the choice becomes obvious.

India’s growth is uneven. The World Inequality Report 2022 revealed that the top one percent of Indians hold 22 percent of the national income, while the bottom half of the population holds just 13 percent.

The average wealth of the top 10 percent is ₹63 lakh. For the bottom half, it is only ₹66,000.

This imbalance drives the wealthy to look outward for opportunities and better systems, while the poor remain stuck. The result is not inclusive development but a widening gap.

India has long seen its best talent leave for opportunities abroad. That brain drain has now evolved into a wealth drain.

Henley and Partners reported that India ranked second in the world for millionaire outflow in 2023, with 6,500 millionaires projected to leave. By 2025, this number could rise to 8,000 every year.

These are not just rich people. They are startup investors, industry leaders, and employers. Losing them weakens India’s long term resilience.

Despite the Smart Cities Mission, Indian cities struggle with livability.

• 39 of the world’s 50 most polluted cities are in India
• Public healthcare spending is just 2.1 percent of GDP, compared to 5 percent in China and 9 percent in OECD countries
• Education spending is only 2.9 percent of GDP, far below UNESCO’s recommended 6 percent

These are not demands for luxury. They are basic needs: the air we breathe, the hospitals we trust, the schools we send our children to.

India has more than 52 million pending court cases. Civil suits can drag on for over a decade.

For business leaders and investors, such delays mean risk and uncertainty. By contrast, countries offering residency visas usually have tech-driven, time-bound judicial systems that provide faster resolutions.

India ranked 96 out of 180 countries in Transparency International’s Corruption Perceptions Index 2023. Add in red tape, frequent policy changes in areas like technology and crypto, and a slow-moving regulatory system, and the business climate looks increasingly unattractive.


This undermines India’s own ambition to be seen as a global hub for manufacturing and innovation.

Indian ultra HNIs are choosing countries that promise stability, efficiency, and safety.

• Dubai and UAE, for their tax-free systems and world-class infrastructure
• Portugal and Greece, with their golden visa programs and favorable tax regimes
• Singapore, known for its governance, education, and healthcare
• Australia and Canada, valued for safety, quality of life, and rule of law
• The US and UK, which despite challenges, still offer unmatched access to business and elite education

India’s GDP is rising, unicorns are multiplying, and headlines call it the next global giant. But if the very people who benefit most from this growth are leaving, it shows a deeper problem.

GDP cannot hide polluted cities, underfunded schools, clogged courts, and complex taxes. Real progress should be measured in trust, opportunity, and quality of life, not just numbers.

When the wealthy migrate, they do not just take their money. They take their confidence, their investments, and their leadership. That is not just a personal decision. It is a national warning.