The number of wealthy Indians choosing to relocate to other countries, causing brain drain and ultimately affecting the Indian economy.
The number of wealthy Indians choosing to relocate to other countries in search of quality life and friendly tax system is increasing. However, this trend can have far reaching consequences on the Indian economy in future. As per the report published by the Henley Private Wealth Migration Report, 2025, nearly 3,500 ‘wealthy Indians’ may leave the country in 2025 itself. It is learnt that over the years, hundreds of Indians have settled in tier-2 and tier-3 cities of the world, expecting a good return of their investment and tax benefits. While migration for economic reasons remains a worldwide phenomenon, outflow of capital and manpower from one country to another is a recent phenomenon. It can hamper investment potential, which in turn will affect job creations, brain drain and other avenues of livelihood. So, the authorities should take remedial steps to curb this trend.
Bearing in mind the significant role high-income citizens play in economic growth of the country, the government of India frames policies and programmes from time to time to lure private parties to become partners in nation building. For instance, after the COVID-19 pandemic, the government lowered the corporate tax considerably, sensing the need to boost the Indian economy in terms of investment. If necessary, similar steps can be initiated to make the atmosphere conducive for rich Indians to invest in the country.
The fact is that relocating to other countries can affect India’s reputation as an investment destination. For instance, if the trend of leaving the country continues among the Indian riches, foreign investors will definitely have a second thought about investing in India. In view of this possible predicament, high-net-worth individuals should be encouraged to invest in the country, which will help create jobs as well as bridge the gap between urban and rural India. Nation-building should not be left to the government alone; it is the responsibility of every citizen. To make India a strong and prosperous nation, everybody should contribute.