Is Akshata Murthy Indian?

To answer the question directly – yes, Akshata Murthy is an Indian citizen by birth. She was born in April 1980 in the city of Hubli in the Indian state of Karnataka to Indian parents N.R. Narayana Murthy and Sudha Murty.

Even after her marriage to British Prime Minister Rishi Sunak in 2009, Akshata has maintained her Indian citizenship. She also holds a permanent UK residence permit. Her Indian roots remain strong despite her overseas connections.

Akshata‘s Background and Family

Akshata spent most of her early childhood in India. Her father N.R. Narayana Murthy is one of India‘s most successful tech entrepreneurs. He founded Infosys in 1981 which is today valued at over $70 billion. Her mother Sudha Murty is a prolific author and philanthropist.

After schooling in India, Akshata earned her undergraduate degree in Economics from Claremont McKenna College in California followed by a MBA from Stanford where she met her future husband Rishi Sunak. They married in 2009 and have two daughters.

Akshata‘s Massive Wealth Comes from Infosys Stake

According to Forbes, Akshata Murty has a net worth estimated at $800 million. The majority of this fabulous wealth can be traced to her 0.9% stake in Infosys. With Infosys shares currently trading at around ₹1,400, her stake is worth ₹5,900 crore or around $725 million at current exchange rates. This makes her one of the richest women in India.

Akshata also owns fashion label Akshata Designs and is a director at Catamaran Ventures, her husband‘s investment firm. But her Infosys shareholding accounts for over 90% of her wealth.

How Akshata‘s Wealth Compares to Average Households

To put Akshata‘s vast riches in perspective, her Infosys stake alone is worth over 50,000 times the average household wealth in India which stands at ₹11 lakh according to Credit Suisse‘s Global Wealth Report 2022.

Compared to the average British household with net assets of £302,500 as per the UK Office of National Statistics, Akshata‘s net worth is over 2,600 times higher.

This astounding scale of wealth amassed by tech entrepreneurs like Narayana Murthy and inherited by their children like Akshata is quite unimaginable for the common citizen.

The Controversy Over Akshata‘s Tax Status in UK

Akshata‘s non-domiciled tax status in Britain became controversial in 2022. As a non-dom, she was not required to pay UK taxes on income earned abroad. After intense scrutiny and backlash, Akshata agreed to pay UK taxes on her worldwide income.

What is Non-Dom Tax Status?

The non-domiciled status is a provision of UK tax law that exempts overseas income of citizens with permanent residency in the UK. The non-dom individual pays an annual charge of £30,000 or more to maintain this status.

This means billionaires like Akshata with foreign assets end up paying very little tax in the UK on their worldwide wealth. At a time when the average British household faces a cost-of-living crisis, this tax exemption for the ultra-rich seems unfair.

Who Criticised This Exemption?

Akshata‘s non-dom status was severely criticised by opposition politicians and activists. As Howard Reed, an economist and former Labour advisor told The Guardian: "The chancellor and his family have avoided around £2.1m a year in tax through the non-dom status. That’s more than the average UK full-time worker will earn in 84 years."

Faced with such criticism over fairness and propriety, Akshata finally agreed to start paying UK taxes on overseas income too. But the controversy shone a spotlight on the special privileges enjoyed by the super-rich.

The Rise of Indian Tech Scions Settling Abroad

Akshata‘s story reflects a growing tribe of ultra-high net worth individuals emerging from India‘s technology and start-up boom. Many of these hugely successful Indian entrepreneurs have children who settle overseas much like Akshata for education and business.

Other Examples of Indian Tech Dynasties

Some examples of fabulously rich Indian tech entrepreneurs whose children live abroad:

• Nandan Nilekani‘s son Nihar Nilekani did his undergrad at Yale and now works for Google in the US.

• Sridhar Vembu‘s sons Kaviarasan and Mahendran are US citizens earning degrees at Ivy League universities.

• Shiv Nadar‘s only daughter Roshni Nadar Malhotra is worth $4.6 billion as per Forbes but lives in Singapore after her education at Northwestern University.

Reasons for Moving Abroad

Why do many children of India‘s richest business families settle overseas? Some of the reasons are:

• Elite education opportunities – Many pursue undergrad or grad degrees at prestigious global universities especially in the US and UK.

• Business connections – They leverage networks in global business hubs like London, New York and Singapore.

• Lifestyle choices – They are more comfortable with the quality of living and social liberties abroad.

• Marriage – Cross-cultural marriages with expatriate families is also a factor.

Implications for India

This brain drain of India‘s wealthy and privileged raises some broader questions:

• Does it reflect flaws in India‘s social fabric and business environment? Issues like corruption and red tape are often cited.

• Is this exodus prudent in an increasingly globalized world or does it deprive India of vital talent and resources?

• Does it further concentrate power and wealth within established industrial dynasties?

There are merits to both sides of the argument. But the rise of globetrotting Indian tech scions with unimaginable privilege is an undeniable phenomenon with complex socio-economic repercussions.

Akshata‘s Appearance at Indian Government‘s Padma Awards

When Akshata unexpectedly attended an Indian government Padma awards ceremony in April 2022 organized in London, officials were quick to usher her to the front row. This VIP treatment demonstrated her newfound prestige as the British Prime Minister‘s spouse.

In conclusion, Akshata exemplifies the modern Indian identity – globally connected but culturally rooted. Her vast Infosys inherited wealth and London lifestyle coexist perfectly with her Indian citizenship. In many ways, she represents the ideal of the transnational Indian.