Millionaires Leaving India: India has long been witnessing an outflow of its wealthy citizens, and the reasons behind this go beyond the usual talk of taxes or lifestyle. Economist and member of the Prime Minister’s Economic Advisory Council (EAC-PM), Sanjeev Sanyal, recently shed light on the forces at play.
Speaking in a podcast, he explained that the migration of millionaires is not merely about pollution, luxury or high living standards. “An important reason is the lack of structural change and competition within India’s business elite,” he said.
“When innovation is stifled and new ideas struggle to gain ground, wealthy individuals often see it as safer to move their business and investments abroad,” he said.
Why India’s Wealthy Are Looking Abroad
Sanyal points out that many large Indian industries and business houses are dominated by the same families or individuals for decades. Opportunities for newcomers or entrepreneurial talent to rise are limited, which reduces innovation and growth.
In such an environment, established business persons often prioritise safeguarding their wealth over experimenting with new ventures.
“This is why many set up family offices or investment centres in places like Dubai. They are looking for stability and fewer bureaucratic hurdles. It is not just an Indian phenomenon, similar patterns exist in other countries as well,” Sanyal said.
Investment In Innovation Still Lags
He stressed that Indian companies need to increase investments in research, technology and innovation. While many spend generously on corporate social responsibility (CSR), actual investment in production and advanced technology remains low.
“Without real focus on innovation, the long-term economic strength of the country suffers,” he said.
Youth Entrepreneurs Embrace Risk
On a brighter note, Sanyal praised India’s startup ecosystem, particularly in cities like Bengaluru, where young entrepreneurs are unafraid to take risks.
“This is why new ideas and companies are emerging in the startup sector. Large industries must adopt the same mindset to stay competitive,” he said.
Accepting Failure, Encouraging Change
Sanyal emphasised that strong economies must accept failure as part of progress. “If large companies fail, they should be allowed to close, creating space for new businesses. The collapse of companies like Jet Airways and past banking crises created new opportunities,” he said.
For India to retain its wealth and attract new investment, Sanyal said continuous structural change, fresh thinking and healthy competition in the business sector are essential. Only then can the country prevent further migration of its millionaires.
According to the Henley & Partners 2025 report, around 3,500 millionaires could leave India this year, compared to 4,300 in 2024 and 5,100 in 2023. It highlights a trend of wealthy individuals seeking opportunities abroad.
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