India’s millionaires and billionaires are not leaving the country entirely. Many still build companies here. But when it comes to investing their gains or planning retirement, they look elsewhere.
Akshat Shrivastava, founder of Wisdom Hatch and popular finfluencer, puts it plainly. “Ten years from now, rich people will work in India. But retire abroad,” he wrote on LinkedIn.
He pointed to a leading Indian billionaire who recently set up a family office in Singapore. For Shrivastava, this move is not an exception. It’s part of a pattern.
Three streams that decide where money goes
Shrivastava says India’s wealthy follow a clear plan. It starts with understanding three types of income: operational, investment and dividend.
Operational income is money earned by running businesses like ports, factories or services in India. “So owning businesses in India makes sense,” Shrivastava explained. This income is taxed under corporate tax, which is lighter than personal tax rates.
The trouble begins with investment income. Stocks attract at least 12.5 percent capital gains tax. Bonds can cost more than 33 percent in tax. Shrivastava did not mince words. “India charges crazy taxes on investments,” he wrote.
Then comes dividend income — payouts from stocks or rent from real estate. India taxes these too. “Again, in India the dividend income is taxed very high,” Shrivastava said.
So, to reduce these tax hits, the wealthy build family offices abroad. These overseas bases let them tap global markets and avoid India’s heavier tax bite. “As a result: rich people establishing family offices is not an anomaly. It is a well thought-out strategy to optimise for 1,2,3,” Shrivastava said.
Facing criticism but staying firm
Some see this as a lack of loyalty. Shrivastava does not. “While, people bash me for writing such posts in the name of ‘nationalism’. The rich quietly learn such points. And, move ahead in their life.”
He believes this is smart planning, not betrayal.
Five hard lessons for the Middle class earner
Beyond the big players, Shrivastava also has advice for everyday earners. He shared what he calls the “five hard lessons” from breaking out of India’s middle-class trap.
First, he says taxes slow you down. “Making money in India is tough. You have an anchor tied to your legs (in the form of taxes),” Shrivastava wrote.
Second, investing is non-negotiable. “If you do NOT invest well, you are working your way to poverty,” he warned. He took a swipe at old favourites like fixed deposits. Growing wealth at 5 percent when inflation eats 10 percent is “stupidity at scale,” he said.
Third, he wants people to think differently. If everyone is putting money in mutual funds or SIPs, maybe you should not. “If people are doing SIPs and Mutual Funds all day, be rest assured that you are not becoming rich in the long-term via that,” Shrivastava said. He fears mutual funds might turn into the next ULIPs — products once sold as silver bullets but which failed many investors.
Fourth, he says India is full of brokers. They skim money at every level. “India is a broker economy. It starts from the top and percolates to the bottom. They eat into everything like parasites. And, make you hollow.” His advice is simple. “Try to cut them as much as possible (be it in buying a house, stocks, whatever).”
Lastly, positivity needs action. “Being positive means that you see the problem. Figure out a solution (for you). And, work towards that.”
A New Kind of Financial Roadmap
One reader put Shrivastava’s blunt lessons into five steps: invest wisely in India and abroad, buy real estate outside India or good commercial property here, avoid bad debt, run more than one business, and manage money yourself.
Shrivastava’s core point is clear. The tax burden at home makes the rich think global. For everyone else, ignoring this reality is a cost few can afford.
Akshat Shrivastava, founder of Wisdom Hatch and popular finfluencer, puts it plainly. “Ten years from now, rich people will work in India. But retire abroad,” he wrote on LinkedIn.
He pointed to a leading Indian billionaire who recently set up a family office in Singapore. For Shrivastava, this move is not an exception. It’s part of a pattern.
Three streams that decide where money goes
Shrivastava says India’s wealthy follow a clear plan. It starts with understanding three types of income: operational, investment and dividend.
Operational income is money earned by running businesses like ports, factories or services in India. “So owning businesses in India makes sense,” Shrivastava explained. This income is taxed under corporate tax, which is lighter than personal tax rates.
The trouble begins with investment income. Stocks attract at least 12.5 percent capital gains tax. Bonds can cost more than 33 percent in tax. Shrivastava did not mince words. “India charges crazy taxes on investments,” he wrote.
10 years from now: Rich people will work in India. But, retire abroad.
— Akshat Shrivastava (@Akshat_World) July 8, 2025
Recently, one of India's richest billionaires set up a family office in Singapore. He is not alone.
Many Millionaire/billionaires are migrating their wealth abroad.
There is a very specific strategy…
Then comes dividend income — payouts from stocks or rent from real estate. India taxes these too. “Again, in India the dividend income is taxed very high,” Shrivastava said.
So, to reduce these tax hits, the wealthy build family offices abroad. These overseas bases let them tap global markets and avoid India’s heavier tax bite. “As a result: rich people establishing family offices is not an anomaly. It is a well thought-out strategy to optimise for 1,2,3,” Shrivastava said.
Facing criticism but staying firm
Some see this as a lack of loyalty. Shrivastava does not. “While, people bash me for writing such posts in the name of ‘nationalism’. The rich quietly learn such points. And, move ahead in their life.”
He believes this is smart planning, not betrayal.
Five hard lessons for the Middle class earner
Beyond the big players, Shrivastava also has advice for everyday earners. He shared what he calls the “five hard lessons” from breaking out of India’s middle-class trap.
First, he says taxes slow you down. “Making money in India is tough. You have an anchor tied to your legs (in the form of taxes),” Shrivastava wrote.
Second, investing is non-negotiable. “If you do NOT invest well, you are working your way to poverty,” he warned. He took a swipe at old favourites like fixed deposits. Growing wealth at 5 percent when inflation eats 10 percent is “stupidity at scale,” he said.
Third, he wants people to think differently. If everyone is putting money in mutual funds or SIPs, maybe you should not. “If people are doing SIPs and Mutual Funds all day, be rest assured that you are not becoming rich in the long-term via that,” Shrivastava said. He fears mutual funds might turn into the next ULIPs — products once sold as silver bullets but which failed many investors.
Fourth, he says India is full of brokers. They skim money at every level. “India is a broker economy. It starts from the top and percolates to the bottom. They eat into everything like parasites. And, make you hollow.” His advice is simple. “Try to cut them as much as possible (be it in buying a house, stocks, whatever).”
Lastly, positivity needs action. “Being positive means that you see the problem. Figure out a solution (for you). And, work towards that.”
A New Kind of Financial Roadmap
One reader put Shrivastava’s blunt lessons into five steps: invest wisely in India and abroad, buy real estate outside India or good commercial property here, avoid bad debt, run more than one business, and manage money yourself.
Shrivastava’s core point is clear. The tax burden at home makes the rich think global. For everyone else, ignoring this reality is a cost few can afford.
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