Why Are More Rich Indians Moving Out of the Country Every Year?

17,000 rich Indians have left the country in the last three years, a report said.

Sanjay Pugalia.

(Photo: The Quint)

Migration is not a new concept. It has existed since the dawn of time. Wealth and people have always been in a constant state of transition. However, every trend needs to be analysed given the context, place, time and existing situation.

In the past three years, 17,000 rich people (those who have more than Rs 6.5 crore in wealth) have left India. South Africa-based market research agency New World Wealth published its annual report, according to which 7,000 super rich people in 2017, 6,000 in 2016, and 4,000 in 2015 left India and established domiciles abroad.

This report, however, does not mention the migration rate of people who are not dollar millionaires.

In times like these, when for the past three years global markets have slowed down, why is it that instead of searching for opportunities in India, people have still chosen to go abroad? One answer is that there is nothing unusual in this.

Wherever there is an opportunity to make a living, people get there. Another answer would be to save on tax, to get away without paying any – generally people who are not very honest and looking to run away.

There is also a third answer – the conditions here are not very conducive for doing business. Doing business here is not just difficult, it can be downright torturous. Believing that all those who have moved abroad have done so to save on tax and get away from investigative agencies is deceiving oneself.

People who have gone abroad have done so after waiting for a long time.

I can tell you that most people who have left in the past few years haven’t gone happily or in fear –they have gone in despair and frustration. Many even want to return, but there is neither place nor opportunity for them.

If ease of doing business was a reality, then Indian businesses would have been setting up new projects here, not leaving the country.

These days we constantly sound the drums of nationalism. We hear the same lectures on patriotism over and over. We are also told the entire world is in love with India, and that India is the best place for global investors.

If this is all true, then why are India’s rich and super rich hastening to join the ‘quit India movement’?