The country is no stranger to waves of migration, but a top economist sees the latest wave of its moneyed elite as a vote of no confidence in its economy.
By Ravi Velloor
Senior Columnist
Since 2015, the largest source of immigrant millionaires after China has been India. According to Henley & Partners, a global investment migration consultant, some 4,300 Indian millionaires moved out of India in 2024, with the UAE as their top choice, overtaking Singapore. Only the UK and China topped those numbers for emigrating millionaires.
Today, the South Asian nation has an estimated 1.1 million people with assets worth more than US$ 1 million (S$ 1.36 million). At least 6,500 are worth US$ 10 million or more, and the country counts at least 4,500 people as centi-millionaires – with assets of US$ 100 million or more. India also has about 161 billionaires, most of whom are self-made.
A recent Asian Development Bank report estimates that the number of Indian migrants abroad is around 18 million, making it the world’s largest migrant population.
Henley’s findings suggest a rising tide in this migration. At one time, most Indian migrants tended to be people looking for better opportunities. Now, a new phenomenon has emerged – wealthy Indians joining the exodus.
The structured Indian emigration is not a new or passing phenomenon. The “brain drain” began as a phenomenon that has helped shape economies and societies abroad.
Wealthy Indian families once opted for boarding schools in Switzerland and the United Kingdom. Now, their children are going to top universities in the United States, Canada, Australia and elsewhere. As the trend has deepened, migration specialists say families are opting for countries that offer quick residency or citizenship linked to investments – what are called “golden visas”.
As prominent economist and author Vivek Wadhwa points out, the world’s richest Indians have been making the move for decades. In a recent podcast, he notes that the richest Indian man – Mukesh Ambani – plans to move to London, while the second richest – Gautam Adani – is already in the midst of expanding his business globally.
Professor Wadhwa, who points out that the average Indian is much better off than he was 40 years ago, still sees reason for concern. People are leaving because of the lack of opportunities, infrastructure challenges, political risks, and a decline in confidence in the country’s future.
Henley and Partners says 4,300 Indian millionaires moved out of India in 2024 – with UAE as their top choice, overtaking Singapore. Only the UK and China topped those numbers for emigrating millionaires.
Bhagwati of Columbia University (now professor emeritus) has pointed out that the Indian diaspora played a major role in helping the economy rebound, thanks to remittances and business networks.
The government, for its part, has not ignored the expatriate population, and it is likely to continue policy measures to build ties and encourage returns.
In the current, fourth wave of Indian out-migration that Dr. Banu Jain and Jankirath Wadhwa went on to say, “India’s wealthy do not see a secure future in their homeland. It is likely that the trend will continue unless policy changes are made.”
Perceptions of intrusive tax regime, data collection unsettle India’s rich
WHAT THEY BRING TO THE TABLE
Indians who have sought Singapore permanent residency or citizenship are not just drawn by the island’s business environment and political stability but also by its approach to tax. The rich who move here also bring expertise, global connections, as well as a willingness to invest in the city state.
While the repo rate is very hefty at 36 per cent for those in the highest tax bracket, India’s tax regime is becoming more intrusive, according to wealth managers and tax experts. The authorities are also collecting more data on their citizens for purposes that include the targeting of their spending patterns as well as their assets held locally and abroad.
Among the biggest complaints is the increased scrutiny of high-value transactions such as large purchases of jewelry, cars, or paintings, and the movement of funds overseas. Indian banks and institutions have to report such transactions to the income tax department, which can probe individuals if it senses anything amiss.
India’s new tax regime has been particularly hard on those who want to move money out of the country to pay for education, buy property abroad, or invest in foreign businesses.
Financial advisers said that for those who want to retain ties and build businesses in India, there is no reason to leave, but for those who prefer global opportunities, Singapore is “a natural destination”.
Lawyer Mohit Harlalka said: “India’s (tax) authorities have become more vigilant in recent years due to better technology and a bigger database. Even individuals with substantial overseas investments and property, and those who do regular overseas transactions, are now under the scanner.”
The rich who come to Singapore would do well to accumulate life experience and global perspective.
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