Return to origin: Why NRIs return and why people with roots here are drawn to India

NRIs returning to India must revisit their financial plan to see how the transition to India will change their financial goals.

You can take an Indian out of India, but you can never take India out of an Indian. And that’s why some of these folks choose to give it all up and come home. Or so it would seem.

Manish Jain, an artificial intelligence (AI) specialist, moved to the US 16 years ago for his higher studies. In 2013, he launched a start-up before selling it a few years later. Bharath Sundararajan, a retail and supply chain professional, also moved to the US to pursue a career. Both Jain and Sundararajan made a success of themselves and lived the American dream. But eventually, it didn't prove enough, and they moved back to India.

Getting a job overseas and having the chance to live abroad is an aspiration for many Indians — it’s their ticket to a better life and global exposure. But having examined the grass on the other side of the fence, a few return to India, believing the pastures here are actually greener. A thriving job market, a good standard of living and having family close by were big pull factors for these folks.

When opportunities come calling

For 37-year-old Jain, the promising start-up ecosystem in India was a big draw. Jain has a PhD in AI and was running his own venture in the US, which was later acqui-hired (acquired primarily for the expertise of the staff) by Procore Technologies, a construction management technology firm. “I joined their new AI division and worked with them for two years. While I wasn’t unhappy, I did not feel the same enthusiasm as when I worked for my own start-up,” says Jain.

Manish Jain returned to India in December 2022 to work for Google Research, Bengaluru. The promising start-up ecosystem in India was a big draw for him.

So, when Google Research made him a suitable offer — both in terms of the quality of work and the pay package — he decided to take it up and joined their Bengaluru office last December.

Commenting on the start-up scene in India, Jain says start-ups founded by his collegemates have attracted funding from the likes of Sequoia Capital (Sequoia India & Southeast Asia is now Peak XV Partners) and Lightspeed Venture Partners. “The start-up ecosystem in India has matured a lot and there is good talent, too. So, it’s a good time to be here,” he says.

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From Yoga to finance

It was a search for spirituality that brought Eela Dubey to India. Dubey, who is now in her early 30s, was raised in the US. She came to India in 2015 to spend time with her extended family and also learn Yoga from her grandfather. “I just loved the experience and ended up settling down in India.”

Eela Dubey moved to India from the US in 2015. Initially, she took up a job in finance. Then, in early 2020, she became the co-founder of EduFund. Her firm helps create investment plans for parents to fund their children’s education.

She took up a job in finance. Her discussions with a colleague on the challenges that Indian parents face in planning for their children’s education led her to co-found EduFund early in 2020. Her firm helps create investment plans for parents to fund their child's education.

“In a country like India, education is seen as a path to achieving a better life. There are a lot of growth opportunities here and so much to be done. In my 30 years, I have seen an increase in the use of technology, access to information, growth in several industries, etc. which is only going to compound much faster in the coming years,” says Dubey.

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An assured base
Sundararajan, a retail and supply chain professional, returned with his family to Chennai in 2018 after spending a decade in the US. He then went to the US again in 2022, only to return, as it was getting difficult for his family to shift base.

Bharath Sundararajan moved back in 2023 to support his wife’s career, kid’s schooling, and to be close to his parents.

His wife took a break from work in 2018 to take care of the children and this was extended until 2022 due to Covid. “She took up a consulting job in Chennai that involved global travel. She even tried working out of the US, but it was getting difficult to manage the kids with her frequent travel and me working full-time in an office. It wouldn’t have been fair for her to quit her job, which she enjoyed. So, we decided to come back to Chennai,” says Sundararajan.

The challenges with lateral entry into a school in the US for their daughter, too, nudged Sundararajan and his wife to rethink their stay in the US.

Vikram Panchal, a Mumbai-based IT professional, came back to India in April 2023 to join his family, which had already returned earlier. He had spent the preceding two-and-a-half years working at client locations in Poland and Germany for an Indian IT firm. While his return was driven by family ties, he found it made sense economically, too. “The IT industry in India is booming and there are many opportunities for individuals like me,” says Panchal.

Vikram Panchal returned from Germany in April 2023. While his return was driven by family reasons, he thinks there is much to gain from working in India.

Staying close to family, raising children 

All three returnees and Dubey told Moneycontrol that India is also about being close to family. For Jain, who is the father of a young child, being in India meant his son would be able to spend time with his grandparents.

For Panchal, children were the main reason for moving back. “We wanted our kids to study in India. We didn’t want them to be raised in a foreign country,” says Panchal.

“NRIs returning to India must revisit their financial plan to see how the transition to India will change their financial goals. For example, they could have significant expenses if they wish to continue their children’s education under an international curriculum in India, which their Indian compensation may not cover,” says Vishal Dhawan, a certified financial planner and founder of Plan Ahead Wealth Advisors.

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Aiming for a better life

But when it comes to comparisons on quality of life, the views vary. Jain strongly feels that well-paid tech workers like him can afford a far better quality of life in India than in the US. Panchal, too, thinks that he has much to gain by working in India. “The income that we get in India is not equivalent to what one can get in Germany. But, you can save a good amount of money here to maintain a similar standard of living with better conveniences than in Europe. Germany has higher taxes compared to India,” says Panchal. He adds, “We are able to save on rental cost as we are living at our parents’ place.” However, Panchal claims that he wants to buy a flat with better amenities for his family this year.

Harshil Morjaria, a certified financial planner at ValueCurve Financial Solutions, recommends a rental stay for 6-9 months in India after returning instead of buying a new home immediately. It’s important to find a job or a sustainable income before making any big-ticket purchases, he says.

Dhawan recommends that NRIs returning to India avoid buying a residential property immediately, as they may need to get used to a different work culture, and therefore keep open the option of moving back if needed.

Sundararajan, too, talks about having to adjust to India’s work culture. After his return to India in 2023, he decided not to take up another corporate job but try his hand at a leadership role in a tier-one real estate firm in Chennai. “It can be difficult to pivot to Indian work culture after working in the US. So, make sure you are financially secure in case your work plan for India does not work out,” he advises. In referring to the culture in India, Sunderrajan implies that there's more work and less time for life, unlike in the US, where he had a better work-life balance.

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Dealing with personal finance matters

Talking about her experience opening a bank account in India, Dubey says that one of the big benefits here is that you can ask the branch manager for help if you have a problem, which is uncommon in the US.

So, is there any personal finance advice that she would offer NRIs returning to India? Dubey recommends that people should consider taking professional help from chartered accountants and financial planners for tax planning and to manage their investments. “For example, if you are a foreign national and are living and investing in India, then there will be certain global tax implications. So, you need the right people advising you,” says Dubey.

Dhawan says that NRIs must understand their tax status once they return as they could have a ‘resident but not ordinary resident (RNOR)’ status for a while. This may enable them to not pay tax on their foreign assets, as well as not declare those assets in their tax returns till they become residents.

Panchal suggests closing your overseas bank accounts if you’re not going to use them to avoid being levied a monthly maintenance charge in the absence of any credits in that account.

You should clear all outstanding dues on credit cards before returning to India. The balance outstanding on credit cards can keep doubling every one and a half years in case the foreign bank charges 2.5 percent monthly interest. Also, these cards attract annual charges irrespective of their usage.

“Banks may trace you and ensure recovery of the total outstanding amount. Also, you may be blacklisted from travelling to that country in future,” says Varun Girilal, Director, Mitraz Financial.

Panchal is bullish on India’s growth trajectory and believes that it’s a good time to invest in Indian equities. “My wife and I have already opened our demat accounts here to build a strong equity portfolio for ourselves.”

For Jain, personal financewise the transition to India was smooth even though he did not really plan for it. The techie ensured that he had the basics in place, such as getting his phone number linked to his bank account, updating the Aadhaar card details for all his family members etc. He, however, feels that the family could have benefited from getting some professional tax advice.