A troubling pattern emerges from the balance sheets of India's wealthiest. Sources confirm that a growing number of billionaires are diverting capital overseas, acquiring foreign companies at an accelerating pace. Uncovered documents from corporate registries reveal a surge in cross-border acquisitions by Indian conglomerates over the past 12 months, even as domestic investment stagnates.
According to filings and leaked memos, at least seven of India's top ten wealthiest individuals have closed or are in advanced talks to purchase stakes in foreign firms, ranging from European engineering companies to American tech startups. The total value of these deals exceeds $12bn, a figure that has more than doubled since 2022. Meanwhile, India's private sector capital expenditure has contracted by 4% year-on-year, according to official statistics.
“The numbers don't lie,” said a former central bank adviser who spoke on condition of anonymity. “When the elite start moving their money out, it's a red flag for the broader economy. They see the writing on the wall.” The adviser pointed to regulatory hurdles, bureaucratic red tape, and a slowdown in domestic demand as key drivers. “They can't expand here, so they go where the runway is longer.”
One prominent case is that of Aditya Birla Group, which this month acquired a majority stake in a Swiss specialty chemicals manufacturer for $1.8bn. The group's chairman confirmed the deal in a statement, emphasising “global synergies.” But industry insiders suggest the move is symptomatic of a deeper malaise. “The domestic market is saturated. Growth has flatlined,” a former executive at the group told me.
Another billionaires moves involve the renewable energy sector. A leading Indian tycoon whose fortune stems from solar power has diverted more than $500m to build a manufacturing plant in Vietnam, bypassing India's own solar manufacturing capacity. The plant will supply components to European markets. Documents show the company had previously lobbied Delhi for production-linked incentives but withdrew after delays.
The trend has not gone unnoticed by the government. In a closed-door meeting with industrialists last month, finance ministry officials urged billionaires to invest at home, warning that capital flight could harm the economy's rating. But the message appears to have fallen on deaf ears. “They talk a good game, but the reality is that doing business in India remains a nightmare,” said a Mumbai-based investment banker who advises several of the families.
Sources close to the Reserve Bank of India confirm that outward foreign direct investment by Indian firms hit a record high this fiscal year, exceeding inward FDI for the first time in a decade. The central bank is concerned about the widening gap but has limited tools to intervene without stifling legitimate business.
The impact on the broader economy is already visible. Domestic manufacturing growth has slowed to 3.2%, and unemployment among skilled workers in the engineering and tech sectors is rising. “When the big fish leave, the ecosystem suffers,” said a labour economist who tracks industrial data.
I have seen this story before. In the late 1990s, as Latin American economies stalled, their elites moved capital offshore. The result was a hollowing out of local industries and a cascade of crises. India is not yet at that point, but the warning signs are flashing amber.
This is a developing story. More details will emerge as I pore over the next batch of leaked filings. But one thing is already clear: when the billionaires vote with their wallets, the rest of us should pay attention.
