By Thamanna Sadique
The economic history of India is full of contradictions. On the one hand, the nation boasts of being the fastest expanding major economy, with its GDP increase of 8.2 percent in FY202324, which is driven by manufacturing and services. Its most prosperous citizens, who are also the ones who construct businesses, establish employment, and make India visible in the world map are quietly packing their bags on the other side.
Even a joint survey conducted by Kotak Private Banking and EY revealed that over one out of five ultra high net worth individuals (those with holdings over 30 million dollars or 25 crore in India) are either emigrating or intend to emigrate.
This begs a grave question; why are those who are creating wealth in India taking off?
The Kotak EY report points out three broad reasons.One of them is the quality of life and infrastructure is superior in a foreign country. Second being better healthcare and education systems. Third having better taxation, legal and business climate.
These are not just luxuries. They are indications of dissatisfaction with the central public services and poor policy home backing.
The outward remittances by the rich Indians are increasing drastically. Indians had remitted 27.14 billion dollars to foreign countries in FY202223 under the Liberalised Remittance Scheme, as opposed to 19.61 billion dollars the previous year. That is a 38 percent jump.
A good deal of this cash is being invested into foreign property, schooling and residence programs. Though this guarantees a future to families in foreign countries, private investment within India is important as it creates job and drives innovation.
India’s growth is uneven. The median income of the top 10 percent is 630000. For the bottom half, it is only ₹66,000.
Such an imbalance compels the rich to seek opportunities and superior systems elsewhere and the poor are left behind. The outcome is not an inclusive development but a further divider.
The GDP of India is on the increase, unicorns are multiplying, and it is being discussed as the next global giant in the headlines. GDP is unable to conceal polluted cities, underfunded schools, congested courts and convoluted taxes.
The rich do not simply bring their money along when they migrate. They steal their trust, their investments and their leaders. It is not only a personal choice. It is a national warning.