Why India's Rich Are Heading Abroad
For India, the trend is intricately linked to intensified domestic tax scrutiny, a rapidly formalising economy, and the magnetic pull of attractive, albeit sometimes illusory, overseas residency programmes.
On July 7, the Emirates News Agency (WAM) reported that the UAE's Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) categorically denied rumours that the country was offering lifetime Golden Visas for AED 100,000 (around ₹23 lakh) to select nationalities, including India and Bangladesh.
This statement followed a widely circulated story, initially reported by PTI and picked up by Indian outlets, claiming a 'nomination-based' pilot programme had been launched for Indian and Bangladeshi nationals, dramatically reducing long-term visa costs.
This incident fits into the broader context of a global phenomenon often referred to as the 'great wealth migration'.
The Henley Private Wealth Migration Report 2025 reveals that India remains among the top five countries losing the highest number of millionaires annually. An estimated 3,500 Indian millionaires will leave the country in 2025—down from 5,100 in 2023 and 4,300 in 2024, yet still among the world's highest.
More strikingly, these individuals are expected to take with them a combined wealth of $26.2 billion.
Globally, 142,000 HNWIs are forecast to relocate in 2025, the highest figure on record. On the receiving end, the UAE is set to welcome the largest net inflow (9,800), well ahead of the US (7,500).
A combination of zero income tax, investor-friendly regulations, a luxurious lifestyle, and long-term visa options has cemented the UAE's position as a wealth hub. Its appeal spans continents, attracting affluent individuals from India, the UK, Russia, Southeast Asia and Africa.
'Outside of Europe, strong demand from the UK, India, Russia, Southeast Asia and Africa, facilitated by attractive golden visa options, has reinforced the UAE's position as the world's most sought-after wealth haven (+9,800),' the Henley report said.
Saudi Arabia, meanwhile, is the biggest gainer year-on-year, with an expected net inflow of 2,400 millionaires in 2025.
Despite the outward flow, India's millionaire population is growing. Between 2014 and 2024, the number of Indian HNWIs rose by 72%, fuelled by start-ups, stock market gains and rising family wealth. Yet regulatory hurdles, security concerns, taxation and lifestyle aspirations continue to spur emigration.
Several factors are driving the migration of India's wealthiest citizens:
1. Tax pressures at home
A key push factor is increased scrutiny by Indian tax authorities. The Central Board of Direct Taxes (CBDT) recovered ₹20,000 crore in outstanding dues in Q1 FY25, nearly double the amount from the same period last year. This includes ₹17,244 crore in corporate tax and ₹2,714 crore in personal income tax (as per ET, 8 July).
The CBDT has set a ₹1.96 lakh crore recovery target for the fiscal year. Total outstanding tax demands have ballooned to ₹42 lakh crore (from ₹10 lakh crore in 2019–20), according to a parliamentary report dated 1 October 2024.2. Formalisation of the economy
India is in the midst of a profound economic transformation. Historically, a substantial portion of its economy operated informally, characterised by cash transactions and limited oversight. However, a concerted effort by the Indian government is rapidly pushing economic activities into the formal sector, with direct implications for tax compliance and recovery.
Central to this is the Unified Payments Interface (UPI), which processed 185.8 billion transactions worth ₹261 lakh crore in FY 2024–25, a 41% increase from the previous year, according to the Reserve Bank of India (RBI).
Every UPI transaction is linked to a PAN, creating digital trails for tax authorities. This has made income harder to conceal, leading to greater compliance.Other measures include: Goods and Services Tax (GST): Unified tax structure with digital tracking via e-invoicing and e-way bills.
JAM Trinity: Jan Dhan, Aadhaar and Mobile systems that tie identity to financial transactions.
Udyam Portal: Simplified registration for MSMEs, broadening the tax base.
3. Cryptocurrency crackdown
The Indian government has significantly escalated its formalisation efforts concerning emerging asset classes, particularly cryptocurrencies, which are now legally recognised as 'Virtual Digital Assets' (VDAs).
This regulatory shift, implemented through a series of measures, aims to integrate the crypto ecosystem into the nation's broader financial and tax framework. Key to this strategy are strict taxation policies and enhanced regulatory oversight under the Prevention of Money Laundering Act (PMLA).
Specifically, a flat 30% capital gains tax is levied on profits from VDA transfers, irrespective of the holding period, with no provisions for offsetting losses against gains or other income. Furthermore, a 1% Tax Deducted at Source (TDS) is applied to VDA transactions exceeding ₹50,000 (or ₹10,000 for specific entities) on the total sale consideration, rather than just the profit. These tax mandates have severely impacted the profitability of crypto investments and trading domestically.
The inability to adjust for losses combined with the TDS on gross transaction value has rendered the Indian crypto market economically challenging for many large-scale investors and high-frequency traders.
The cumulative effect of these stringent tax and regulatory policies has been a discernible shift in crypto trading volume and capital away from Indian platforms towards offshore exchanges. Wealthy individuals, seeking environments with lower tax burdens and less restrictive regulations on their digital assets, are increasingly exploring international avenues.
4. Global mobility and lifestyle aspirationsAccording to a survey by Kotak Private in partnership with EY, 22% of ultra-rich Indians expressed a desire to leave the country for better living standards, healthcare, education, and ease of doing business.
Many also seek visa-free travel, which Indian passports currently do not offer at the same level as European or Caribbean counterparts. While domestic pressures contribute to the outflow, powerful 'pull factors' from abroad, particularly attractive residency and citizenship-by-investment (CBI) programs, play a significant role.
Countries offering zero or low personal income tax, capital gains tax, and inheritance tax are highly desirable. The UAE stands out as a prime example, with its zero personal income tax, no capital gains tax, and no inheritance tax, making it a leading choice for wealth preservation.
Additionally, jurisdictions such as Portugal, Singapore and the UAE offer attractive regimes for estate planning, making them prime options for intergenerational wealth transfer.
UAEWith its zero-tax regime, quality of life and efficient Golden Visa programme, the UAE remains the top destination for Indian HNWIs.
USAThe US remains popular, especially through the EB-5 visa route. A new entrant, the Trump 'Gold Card', has also generated buzz.
Click here to read more
Also read: India Launches E-Visa For Kuwait From July 14: 5-Year Tourist Visas Available Source The Economic Times
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Insider
an hour ago
- Gulf Insider
Why is Gold in Dubai Cheaper Than in India?
Dubai is a global citizen's paradise. Known for its modern architecture, luxury shopping experiences, vibrant nightlife and must-see landmarks like Burj Khalifa. Dubai also boasts of its world-famous gold souks that have earned it the nickname 'City of Gold'. As if this association with gold were not enough, there's another reason Dubai is very popular. Gold in Dubai is cheaper than it is in India. Is this really true? We will come back to this. First, let's understand Dubai's association with gold. It may surprise you to know that Dubai does not have a single gold mine of its own. Then, where does it get its gold? All that glittering gold that you see in Dubai is sourced primarily from African nations, Turkey, Switzerland and Russia. And who are the buyers? After sourcing from global gold mines and refining it, Dubai gold finds buyers in India and China, the two largest gold-consuming countries in the world. Now, before we compare India and Dubai gold prices, let us understand the carats and purity levels of gold available in Dubai. Carat or Karat is the term used to measure the gold content or purity. 24 carat gold is made up of 24 parts pure gold, whereas 22 carat gold is made up of 22 parts gold and 2 parts alloyed metals. Similarly, for 21 and 18 carat where other metals added constitute 3 and 6 parts. In the West, the karat is expressed in fineness. For example, 24 carat gold is expressed as 1,000 parts out of 1,000 pure or fineness 1.000. Similarly, 22 carat is expressed as 22 divided by 24, which will give you a fineness of . you multiply .9166 by 1,000, it gives 916.66 level of purity. Now, for calculating fineness of 21 karat, 21 is divided by 24 to arrive at .875 fineness and similarly, for 18 karat it is .750 fineness. The purity level for 21 karat and 18 karat gold is defined as Gold 875 and Gold 750. So, 22 carat gold can be depicted as fineness of .9166 or 916.66 level of purity. The Dubai Jewellery Group (DJG), a premier trade association for the Dubai jewellery industry, has a simpler and transparent way of disseminating real-time gold prices for consumers. Most jewellery outlets display the prevailing 'Suggested Retail Jewellery Price' on screen, which are digitally updated 3 times every day. As an Indian, you need to have the United Arab Emirates Dirham (AED) to buy gold in Dubai. At the current foreign exchange rate, you need Rs 23.50 to buy 1 AED. On July 23, one gram 24 carat gold was quoted at AED 405.25, approximately Rs 9,523. Comparatively, gold in India was trading higher at Rs 9,888. As the purity of gold falls, so do the price. 22K traded at AED 375.25, 21K at AED 359.75 and 18K at AED 308.50. If you are buying gold worth Rs 2 lakh (about 20 grams) in Dubai, it could help you save over Rs 7,000. Gold price today in India is Rs 99,450. For the first time in 2025 gold crossed Rs 1 lakh on July 23 to create an all-time high level. Bringing gold from Dubai may not be simple unless you stick to the laws of the land. I have written about this earlier. Just to recap… Gold can be transported in checked baggage up to one kilogram, with a minimum six-month overseas stay required for one kilogram, if disclosed and duty paid. Indian women are allowed to bring up to 40 grams of gold or up to a maximum value of Rs 1 lakh, while men are allowed to bring up to 20 grams of gold or up to a maximum value of Rs 50,000 without paying any duty. Got kids? Children under 15 can bring 40 grams of gold ornaments up to a maximum value of Rs 1 lakh without paying customs duty. And make sure that the weight of gold, including ornaments, should not exceed 1 kg. per passenger. Needless to say, keep all purchase vouchers handy at the airport. Gold in Dubai is cheaper than in India because of taxes. There's no GST on gold in Dubai. But, there's 5% of value-added tax (VAT). Not to worry. Dubai makes sure its tax-free shopping for you. You can claim a full refund of VAT. There are time limits to adhere to for such refunds. If you bring gold from Dubai or any other location, you will have to pay customs duty. The rate will depend on the quantity and the gender. Here are the customs duty rates on gold: 3% for 20 to 50 grams for males/ 40 to 100 grams for females and children 6% for 50 to 100 grams for males/ 100 to 200 grams for females and children 10% for over 100 grams for males/ over 200 grams for female and children For commercial use, gold imported into India is subjected to GST, Agriculture Infrastructure Development Cess (AIDC) and Integrated Goods and Service Tax (IGST), all adding up to the final in-hand price for consumers. Indians visiting Dubai for vacation end up buying gold due to the significant price gap between the two countries. For Indians, 24-carat gold can be 5% to 7% cheaper in Dubai. But wait! You also need to ensure the gold you buy in Dubai is pure. So, just as Hallmarking is a must in India, ensure that gold purchased in Dubai has the Dubai Central Laboratory Department issued Bareeq Certification. Also read: Dubai Mallathon: Crown Prince Sheikh Hamdan Launches New Summer Fitness Programmes in Shopping Malls
Daily Tribune
19 hours ago
- Daily Tribune
Modi renews ties with Maldives
Indian Prime Minister Narendra Modi wrapped up a visit to the Maldives yesterday, renewing ties by offering infrastructure projects and vital financial assistance to the cash-strapped Indian Ocean nation. Regional powerhouse India had been concerned that its small, yet strategically located neighbour was drifting towards the orbit of its rival China following the 2023 election of President Mohamed Muizzu on an anti-India platform. Since coming to office, Muizzu has secured the withdrawal of a small contingent of Indian military personnel who operated search-and-rescue aircraft in the archipelago. During his two-day trip, Modi also inaugurated a new defence ministry headquarters and several India-funded infrastructure projects, including roads and a 4,000-unit housing scheme. But he has since toned down his anti-India rhetoric, and on Friday he touted the two nations' collaboration on security and trade. "India has long stood as the Maldives' closest and most trusted partner," Muizzu said in a banquet speech alongside Modi, whom he met with twice last year. "We deeply value the friendship of India and are grateful for the timely assistance your country has extended to us in moments of need," Muizzu added. Shortly after his arrival on Friday, Modi unveiled a $565 million credit line for the Maldives, which is facing a severe foreign exchange shortage despite its thriving tourism industry. India also reduced annual repayments of an earlier credit line from $51 million to $29 million, and the two sides discussed a potential free-trade agreement. Muizzu said the new credit line would bolster the Maldives' security forces, and improve healthcare, housing and education. Modi's visit had set "a clear path for the future of Maldives-India relations", Muizzu wrote on X on Saturday as the Indian leader left the capital Malé after 60th Independence Day celebrations. "Our relationship continues to grow, shaped by people-to-people ties and cooperation in various sectors," Modi wrote in his own post on X. "India remains committed to supporting the aspirations of the Maldivian people." Known for its luxury tourism and pristine beaches, the Maldives is also a geopolitical hotspot, with key global shipping lanes passing through its 1,192 islands, stretching across 800 kilometres (500 miles) of the equator. China and India are the Maldives' two largest bilateral lenders.
Gulf Insider
6 days ago
- Gulf Insider
World Economic Forum (WEF) Founder Denies He Fudged Data, Racked Up $1.1M In Expenses
Klaus Schwab, the 87-year-old architect of Davos and the WEF's global elite gatherings, slammed the organization's board of trustees on Sunday, accusing them of breaking a confidentiality deal by letting media outlets get wind of the allegations. 'I am in a position to refute all the accusations brought up against me,' Schwab said in a statement after Swiss newspaper SonntagsZeitung detailed preliminary findings from a law firm's probe. The investigation, conducted by Swiss law firm Homburger and ordered by the WEF's own board, reportedly found that Schwab interfered with the forum's flagship economic rankings to favor political allies and avoid controversy – and submitted 900,000 Swiss francs (about $1.1 million) in expenses that investigators say lacked proper justification. Three months ago we reported that Schwab was under investigation by the WEF after a whistleblower alleged financial and ethical misconduct by Mr. 'eat the bugs' and his wife. In an anonymous letter from sent to the board of directors by 'current and former Forum employees,' Schwab and his wife are accused of commingling their personal affairs with WEF resources without proper oversight, and much more… Among the most serious allegations: Schwab asked junior employees to withdraw thousands of dollars from ATMs on his behalf and used Forum funds to pay for private, in-room massages at hotels. His wife Hilde, a former Forum employee, scheduled 'token' Forum-funded meetings in order to justify luxury holiday travel at the organization's expense. The letter also raises concerns about how Klaus Schwab treated female employees and how his leadership over decades allegedly allowed instances of sexual harassment and other discriminatory behavior to go unchecked in the workplace Other allegations include the Schwab family's use of Villa Mundi – a luxury property bought before the pandemic by the Forum located next to the organization's Geneva headquarters, which the whistleblower letter maintains that Hilde Schwab maintains tight control over, and which the forum paid $30 million to purchase and another $20 million to renovate – also overseen by Hilde. Schwab says he paid the WEF back for said 'in-room massages', and denied the allegations about luxury travel and withdrawing funds. According to the WEF, its board unanimously supported the decision to launch an independent investigation 'following a whistleblower letter containing allegations against former Chairman Klaus Schwab. This decision was made after consultation with external legal counsel.' Schwab abruptly resigned from the WEF in April after the allegations surfaced. A replacement has yet to be named. The report claims Schwab personally intervened to tweak the WEF's Global Competitiveness Report to protect ties with key leaders like Indian Prime Minister Narendra Modi. In 2017, Schwab allegedly ordered a delay in releasing the rankings to avoid souring relations with India, whose score took a dive. He also reportedly advised holding back on boosting the UK's ranking to avoid giving ammo to Brexit supporters. In another incident in 2022, Schwab allegedly shared draft rankings with an unnamed country official whose position slipped, pushing to kill that year's report entirely. The WEF later blamed the cancellation on COVID-related disruptions. Schwab insists he's been deceived, saying he offered to sit for an interview with investigators on July 15 and was promised a chance to review the findings before any conclusions were published. 'In this respect I feel deceived,' he said. 'I am willing to defend my interests with all my strength, even in the context of a legal dispute.' The WEF stayed tight-lipped when contacted by Bloomberg, saying only that it would comment once the probe concludes, likely by late August. Sunday's revelations ramp up an already heated battle between Schwab and his former colleagues. Just weeks ago, the WEF and its founder released a joint statement claiming they were working to 'normalize' their strained relationship. But with accusations of data manipulation and lavish spending now in the open, that détente looks increasingly shaky. Source Zero Hedge
