Why NRIs Are Returning to India & How to Prepare | Guest Appearance at NRI Money Clinic
After 20 years as an NRI and interviewing hundreds of returning families, Avinash Peddi shares insights on why NRIs return, the challenges they face, how kids adjust, and how to prepare for a smooth transition back to India.
Why NRIs Are Returning to India & How to Prepare for a Smooth Transition
After 20 years as an NRI and founding DIY Return, I've interviewed hundreds of returning families. In this guest appearance at NRI Money Clinic with Dr. Chandraganth, I share insights on why families return, the challenges they face, and how to prepare for a smooth transition.
Key Takeaways
- It's not just a physical move — it's mental preparation for the entire family
- The "why" is most important — go where you can live with the cons
- Kids adjustment is the biggest concern — age and preparation matter
- Try living as a resident (not visitor) for a few months before deciding
- Preparation is key — failing to prepare makes you fail in the process
About This Interview: I'm Avinash Peddi. I was an NRI for 20 years — my journey started in 2002 when I went to the US for my masters. Over the years, I had a successful career, built businesses, and navigated the ups and downs of living abroad. In 2022, I returned to India, and a year later founded DIY Return — a platform dedicated to helping NRIs move back with financial confidence. I've interacted with several returning NRIs, interviewed hundreds of them, and partnered with financial experts, CAs, and institutions like IDFC Bank.
Why NRIs Return to India
People return to India for two main types of reasons: either it was an intentional decision that they want to be back, or a forced decision due to completion of work assignment or visa issues. Let's focus on intentional decisions.
Understanding your "why" is crucial because it determines how well you'll handle the challenges ahead. Many families struggle after moving back to India precisely because they didn't have clarity on their primary motivation.
Main Reasons for Returning
Aging Parents
Parents are getting older and NRIs want to be close to them. This is one of the primary factors why the thought of returning comes to many people. According to the Indian diaspora statistics, family proximity remains the top reason for return migration.
Family, Friends & Cultural Fabric
The fabric of celebrating holidays and festivals, the social connections — these are nostalgic moments that people miss after spending years abroad. The experience in India is different from what they experience abroad.
Entrepreneurship
Some people want to start their own career as an entrepreneur or startup. Due to visa regulations, this isn't feasible while living abroad. While they're still young and have energy, they want to give it a try — which means moving back where they have flexibility. Read how one returnee created 100+ jobs as a successful entrepreneur after moving back.
Career Opportunities
The opportunities in India have changed dramatically — especially compared to 10 years ago. The salaries companies are paying, opportunities from not only services companies but also product companies and startups — the ecosystem has changed. When evaluating opportunities abroad versus India, while having the pros of living close to family with no visa restrictions, this becomes attractive.
Kids Upbringing
Some families prefer to bring up kids the same way they were brought up — with family, cousins, joint family culture. This cultural fabric is another reason people think about returning.
Retirement
For people who have worked abroad for many years and are financially stable, when looking at retirement, India offers a much better cost of living than Western countries. Learn more about why India is best for early retirement and FIRE strategies.
Challenges When Returning to India
For someone who has been living abroad, they get accustomed to certain lifestyle and systems. Here are the challenges to acknowledge:
Infrastructure & Environment
- Developed vs Developing: People need to acknowledge this first. You can't expect the same library systems, parks, or infrastructure available abroad.
- Weather & Pollution: Air pollution and weather are outside your control but need to be considered.
- Traffic & Population: Very different from what you have abroad.
Service & Work Culture
- Customer Service: In Western countries, customer service is more structured and streamlined. In India, it's different — the systems are different.
- Work-Life Balance: Career transitions and work-life balance expectations differ, though things are changing and evolving.
Financial Complexity
For people who became citizens abroad, they have to navigate tax laws of not only India but also other countries. It's complex but something you can work through with a financial planner — you have to report in both countries and maintain books. Understanding FEMA rules for NRI foreign assets is essential before making the move.
The Key Insight: These are things outside what you can influence. You have to acknowledge them and prioritize what's more important. At the end of the day, it depends on your key priority and why you're moving — and how you can navigate the other parts that come as a package.
Kids Adjustment: The Biggest Concern
For many families, this is the most important thing on their mind: how will the kids adjust? This is often the deciding factor that determines when families make the move.
Key Considerations
- Language: Kids growing up abroad might not be fluent in reading and writing their mother tongue
- Curriculum: What curriculum is appropriate? India has many options — IB, IGCSE, CBSE — which are more towards global standards
- Friends & Ecosystem: They got used to certain surroundings. Adapting becomes harder in middle school or high school when they've developed their own personality
- Age Factor: The flexibility of adapting reduces as children get older
For a detailed real-world example, read about a young family returning to India after 9 years in the US and how their children adjusted to the transition.
✅ Positive Aspects for Kids in India
- Community Living: Extracurricular activities happen within communities — no need to shuttle back and forth
- Social Life: Kids have their own friends in secured communities — no need to schedule play dates
- Family Connection: Close to grandparents, cousins, uncles, and aunts
💡 Important: Things have changed in India. It's not as strict as when we were growing up. The education system has evolved. Change your mindset about what India is doing now — explore, talk to schools, and see what's appropriate for your kid.
Common Irritations Returnees Face
Based on my discussions with families who have returned, here are the common themes:
What Returnees Report
- Traffic: Something they have to deal with
- Work Culture: Depending on the industry, work culture experienced abroad versus expectations here differ — but things have evolved and are much better
- Customer Service: Different from the structured approach abroad
- Infrastructure: Some limitations compared to developed countries
- Kids Adjustment: Goes back to planning — when you're moving and what preparation was done
The Pattern: If NRIs come to India with the wish "I love life here, I want to stay closer to my family" — all the irritations slip into oblivion and they manage it as a cost. But if you come out of compulsion, it can work as an irritant. When you have to get something, you have to compromise something else — that's a given.
How to Prepare for the Move
Key Preparation Areas
Career Transition
Are you planning to move as an internal transfer from your current company? This definitely helps in a smooth transition. Or are you planning to change roles? How are you planning from a career perspective?
Kids' Education
What curriculum are you planning to select? What schools do you want to put them in?
City Selection
Are you going back to the same hometown you grew up in, or moving to another city close to family or better for career opportunities?
Financial Planning
You have assets abroad. Are you planning to continue them or what do you want to do with pension funds? Do you want to bring the entire money back to India? Work with a financial expert for your unique case — everybody's situation is different. Understanding your RNOR status tax benefits can save you significant money during the transition.
Logistics
What do you want to do with your house — sell or rent? What things do you want to move back? What do you want to purchase there?
💡 Pro Tip: Test the Waters First
If you have the flexibility to work remotely, before making a big move, try spending a couple of months in India — not as a visitor but as a resident.
Rent a furnished apartment or house and try to live as a resident where you're getting things done as a resident. This gives you a good flavor of the life you can expect in India and helps make an appropriate decision.
💡 Key Principle: "Failing to prepare makes you fail in the process. A little bit of preparation takes you a long way for a successful transition."
The Key Message
Summary of Insights
- The "Why" Matters Most: Go to a place where you can live with the cons, where the cons don't bother you much
- Family Decision: Take the entire family into consideration — spouse, kids, everyone. Happy family, happy life.
- No Perfect Place: There's no perfect place anywhere in the world. Decide what's more important.
- India Has Changed: Things have evolved dramatically. Change your mindset about what India is today.
- Preparation is Key: Talk to families who have done it. Understand their experiences. It helps you prepare better.
Planning Your Return to India?
Connect with families who have already made the move. Get real insights, practical guidance, and build a helpful community around your return journey.
If you've moved back or are planning to move back, share your questions or just say hi in our community.
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