Key Insights on India’s Ultra-Wealthy Migration Trends

India currently has 85,698 individuals with assets over $10 million, according to a recent Knight Frank report. Despite the country’s booming economy, many wealthy Indians are choosing to relocate abroad, while still maintaining strong financial and business connections back home.

A recent survey by Kotak Private Wealth Management and EY found that 20% of ultra-high-net-worth individuals (UHNWIs) plan to emigrate but will retain their Indian citizenship and continue investing in India.

Why Are India’s Wealthy Moving Overseas?

KM, a 37-year-old Indian entrepreneur from Mumbai, exemplifies this trend. Planning to move to Dubai soon, KM cites lower taxes, a better lifestyle, and proximity to Mumbai as key reasons for choosing the UAE as his new base.

KM explained:

“India’s economy is thriving, and I will keep my business headquartered here. But for living, Dubai offers tax benefits, quality education, and a global community.”

Other popular destinations for India’s wealthy include Singapore, Portugal, the U.K., and the U.S., all offering favorable tax regimes and global mobility.

Strategic, Not Permanent, Relocation

Experts emphasize that this trend is more about strategic diversification than permanent migration. Himanshu Kohli, co-founder of Client Associates, explains:

“Wealthy Indians are expanding their global footprint to secure generational options, not abandoning India.”

Most continue to hold significant investments in Indian start-ups, real estate, and other sectors, reinforcing strong economic ties.

Tax Policies and Perceptions

India’s relatively high income and capital gains tax rates contribute to the push for relocation. The UAE, for example, offers zero taxes on personal income and capital gains. Meanwhile, India applies progressive taxes, including a 15% tax starting at income levels around ₹1.2 million and a 12.5% tax on long-term capital gains.

However, experts argue this is not simply a case of tax avoidance. Dhruba Jyoti Sengupta, CEO of Wrise Wealth Management Middle East, notes:

“Indian wealthy individuals seek freedom, mobility, and future planning opportunities. It’s about lifestyle and legacy, not fleeing taxes.”

Other concerns influencing migration include urban congestion, pollution, and infrastructure challenges.

Wealth Drain Is a Global Challenge

India’s situation reflects a common challenge faced by emerging economies, where the emigration of wealthy individuals can impact investment, innovation, and tax revenues.

The Henley Private Migration Report forecasts India will lose about 3,500 millionaires this year, although the rate of departure has declined recently.

Neil Bahal, founder of Negen Capital, highlights that many wealthy Indians remain bullish on the country:

“Most millionaires want exposure to India’s growing consumer market and continue to allocate 60-65% of their wealth domestically.”

What India Needs to Retain Its Wealthy

Experts agree that India must make systemic reforms to become a more attractive place for wealthy residents and investors:

• Deregulation and reducing bureaucracy (“regulation raj”) to ease doing business (Sanjay Baru, political analyst).

• Improved urban planning and infrastructure to tackle congestion and pollution (Sunaina Kumar, Observer Research Foundation).

• Creating engagement pathways for wealthy Indians to contribute to philanthropy and job creation both in India and abroad.

If successful, India could emerge as a wealth hub, retaining and attracting high-net-worth individuals similar to the UAE or Switzerland.

Final Thoughts: Wealth-Friendly Policies Are Key

KM sums it up:

“If India improves living standards and adopts wealth-friendly policies, there’s no reason for me to stay away. This is where my wealth grows.”

Additional Market Updates

• The Asian Development Bank lowered India’s economic growth forecast for FY26 to 6.5% from 6.7%.

• The Henley Passport Index ranks India’s passport 77th globally, improving from 85th six months ago.

• Indian markets traded lower on Thursday with the Nifty 50 down 0.62% and the BSE Sensex down 0.7% (as of 1:45 p.m. IST).