The order for expulsion was also based on the Indophobic social climate of Uganda. The Ugandan government claimed that the Indians were hoarding wealth and goods to the detriment of indigenous Africans, "sabotaging" the Ugandan economy.
According to H.H. Patel, many Indians in East Africa and Uganda were in the sartorial and banking businesses, where they were kept forcibly by the British colonialists. Since the representation of Indians in these occupations was high, stereotyping of Indians in Uganda as tailors or bankers was common. Also, some Indians perceived themselves as coming from a more advanced culture than Uganda, a view not appreciated by Ugandans. Indophobia in Uganda thus predated Amin, and also existed under Milton Obote. The 1968 Committee on "Africanization in Commerce and Industry" in Uganda made far-reaching Indophobic proposals. A system of work permits and trade licenses was introduced in 1969 in order to restrict the role of Indians in economic and professional activities. Indians were segregated and discriminated against in all walks of life.
Their expulsion resulted in a significant decline in Uganda's Asian Hindu and Muslim population. Many Asians owned big businesses in Uganda and many Indians were born in the country, their ancestors having come from India to Uganda when the country was still a British colony. Those who remained were deported from the cities to the countryside, although most Asians were granted asylum in the United Kingdom. A plurality of the Asians with British passports, around 30,000, emigrated to Britain. Other countries receiving 1,000 or more of the emigrants include India, Canada, Kenya, Pakistan, West Germany, Malawi, and the United States. Many emigrants also found their way, in smaller numbers, to Australia, New Zealand, Austria, Sweden, and Mauritius.
Ugandan soldiers during this period engaged in theft and violence against the Asians with impunity. After their expulsion, the businesses were handed over to Amin's supporters.