India is witnessing a troubling trend: high net worth individuals (HNWIs) and young professionals are increasingly leaving the country in search of better opportunities abroad. The reasons are clear—frustration with a dysfunctional political system, rampant corruption, subpar infrastructure, and a tax regime that feels disproportionately burdensome with little return in terms of public services. Public transport systems are chaotic, often overcrowded and unreliable, government hospitals struggle to meet basic healthcare needs, and entrepreneurs face endless bureaucratic hurdles while grappling with high taxes. This brain-drain and wealth exodus are depriving India of its brightest minds and economic potential. To stem this brain-drain and wealth exodus, India needs a bold, innovative solution: the creation of small, semi-autonomous states within its borders, modelled after “Dubai or Singapore”, with world-class infrastructure, low tax rates, and a unique twist—accessibility only by air travel to create the distinct feel of a “foreign” destination. Here’s why this could be a game-changer.
The Problem: Why Are India’s Best Leaving?
India’s economic progress is remarkable, yet systemic issues are pushing its talent and wealth overseas:
- High Taxes, Low Returns: HNWIs and entrepreneurs face tax rates often exceeding 30-40%, with additional surcharges, yet public services like healthcare, education, and infrastructure lag behind countries with comparable or lower taxes.
- Inadequate Infrastructure: Overcrowded cities, unreliable public transport, and crumbling roads frustrate even the wealthy.
- Corruption and Bureaucracy: Entrepreneurs navigate a labyrinth of red tape, with corruption inflating costs and stifling innovation.
- Aspirational Gap: Young professionals and HNWIs crave a global lifestyle—clean, safe cities, quality healthcare, and vibrant opportunities. India’s urban centers, despite progress, often fall short.
A 2023 Henley & Partners report estimated that 7,500 HNWIs left India in 2022, flocking to destinations like the UAE, Singapore, and Canada. Young talent, too, is chasing study-abroad programs or jobs in countries offering better prospects.
The Solution: Air-Only States with Global Standards
To retain its talent and wealth, India could create small, semi-autonomous city-states designed as economic and lifestyle hubs, accessible exclusively by air travel. These regions would offer:
- Low Tax Regimes: A flat tax rate of 10-15% for individuals and businesses, inspired by Dubai’s zero personal income tax or Singapore’s competitive corporate taxes, to attract HNWIs and entrepreneurs.
- World-Class Infrastructure: These states would feature modern urban planning—green spaces, reliable power, high-speed internet, and premium amenities. Private-public partnerships could drive development, emulating Dubai’s Burj Al Arab or Singapore’s Marina Bay.
- Air-Only Access: By limiting connectivity to air travel, these states would cultivate a distinct, “foreign” feel, akin to stepping into another country. Dedicated airports with international-grade facilities would serve as the sole entry and exit points, enhancing exclusivity and streamlining logistics. This would also reduce strain on India’s overburdened road and rail networks.
- Streamlined Governance: A business-friendly environment with minimal bureaucracy, transparent regulations, and zero tolerance for corruption. These states would operate under a special governance framework, similar to special economic zones (SEZs) but with greater autonomy.
- Premium Public Services: High-quality healthcare, international schools, and efficient transport within the state would cater to the global aspirations of residents. Private hospitals and universities could establish world-class facilities, incentivized by tax breaks.
- Cultural and Economic Integration: While offering a globalized lifestyle, these states would remain part of India, preserving cultural ties through festivals, cuisine, and community initiatives.
Why Air-Only Access?
Restricting connectivity to air travel isn’t just a stylistic choice—it’s a strategic one:
- Exclusivity and Appeal: Air-only access creates a sense of detachment from India’s systemic challenges, offering residents a “foreign” experience without leaving the country. It mirrors the allure of island nations, where airports are gateways to a distinct lifestyle.
- Controlled Development: By eliminating road and rail links, these states can focus on self-contained, sustainable ecosystems, avoiding urban sprawl and overpopulation.
- Security and Efficiency: Airports allow for streamlined immigration, customs, and security processes, ensuring a safe and efficient environment for residents and visitors.
- Global Connectivity: Direct flights to international destinations would position these states as global hubs, attracting foreign investment and talent.
How It Could Work
India has the resources and vision to make this a reality. Here’s a roadmap:
- Strategic Locations: Coastal or island-like regions, such as areas along the Gujarat or Karnataka coast, or even repurposed offshore sites, could be developed. Proximity to trade routes would enhance economic potential.
- Special Governance Framework: Establish semi-autonomous governing bodies with authority over taxes, regulations, and infrastructure. This could adapt Hong Kong’s “one country, two systems” model to India’s federal structure.
- Air Infrastructure: Build state-of-the-art airports with capacity for domestic and international flights. Partnerships with global aviation firms could ensure efficiency and luxury.
- Attract Investment: Offer tax holidays, land grants, and incentives to draw global corporations, startups, and real estate developers. Dubai’s Jebel Ali Free Zone demonstrates the success of such policies.
- Sustainability Focus: Eco – friendly designs with renewable energy, efficient waste management, and green spaces would appeal global elites and environmentally conscious residents.
- Pilot Projects: Start with one or two states as proof of concept. Success could lead to a network of such hubs across India.
The Benefits for India
This model could transform India’s economic and social landscape:
- Retain Wealth and Talent: Low taxes and a global lifestyle would keep HNWIs and professionals in India, boosting domestic investment and innovation.
- Economic Multiplier Effect: These hubs would create jobs, attract foreign direct investment (FDI), and stimulate growth in aviation, tourism, and technology sectors.
- Global Branding: A “Singapore of India” accessible only by air would elevate India’s reputation as a destination for business and luxury living.
- Balanced Development: By decentralizing growth from metros like Mumbai and Delhi, these city-states would reduce urban congestion and promote regional development.
“This is just a food for thought for those who can actually create a difference”.