Indian millionaire migration: What drives this trend; should it be a cause for concern? Know Your Answers
PTC Web Desk: Recent news on Indian millionaire migration paints a complex picture. Despite a decrease in the number of millionaires leaving the country this year compared to last, the movement remains significant and raises questions about its impact on the Indian economy. What drives this trend, and should it be a cause for concern?
Factors Driving the Migration
In a talk with Rohit Sethi from ESS Global, Chandigarh, it came to the fore that search for a better lifestyle, access to advanced healthcare, high-quality education, and a cleaner environment are primary motivators for many Indian millionaires moving overseas. While these reasons are understandable, the decision to immigrate involves substantial personal sacrifices. Relocating to a new country means leaving behind family, friends, and cultural roots. Integrating into a different country requires significant adjustments, making the choice to move highly personal and dependent on individual circumstances.
Economic Impacts of the Migration
One of the main factors pushing millionaires to move overseas is the high tax rate in India. This results in a loss of revenue for the country, potentially affecting the funding of social programmes and infrastructure development. Additionally, the migration of millionaires contributes to a brain drain, as these individuals often possess valuable skills and experience essential for establishing and running businesses. Their departure deprives India of expertise that could contribute to the nation's economic growth.
The Positive Aspects
Despite these concerns, there are positive aspects to the migration of Indian millionaires. Many businesspersons maintain their Indian operations even after relocating overseas, fostering stronger ties between India and their new country. The Indian diaspora abroad acts as informal ambassadors, strengthening bilateral relations.
Furthermore, the increased inflow of foreign remittances is a significant benefit. In 2023, India received a total of USD 108 billion in remittances from other countries. This substantial contribution highlights the ongoing economic link between the Indian diaspora and their homeland. Although these individuals may not be paying taxes in India, they still contribute to the country's growth through remittances.
- PTC NEWS
