In recent years, a growing number of Indian expatriates are choosing to leave lucrative positions at major technology companies in Silicon Valley and return to their homeland to launch their own startups. This reverse migration trend is being driven by several factors, including India’s booming economy, expanding internet adoption, and improved business environment.
Nithin Hassan exemplifies this movement. After spending 16 years working for tech giants like Amazon, Microsoft, and Meta in the United States, Hassan made the decision to move back to Bengaluru with his family in late 2023. He left behind an annual salary of around $500,000 at Meta to pursue his entrepreneurial ambitions in India, where he has since founded two startups.
The COVID-19 pandemic played a role in Hassan’s decision, as it highlighted India’s potential as an ideal market for new businesses. The country recently became the world’s most populous nation and is experiencing increased consumer demand and internet penetration in the wake of the pandemic.
This trend of reverse migration is not entirely new. It began in the 1990s and gained momentum after the 2008 financial crisis, according to Binod Khadria, president of the Global Research Forum on Diaspora and Transnationalism. Initially, many returnees found employment with multinational corporations operating in India. Today, however, a significant number are opting to start their own ventures.
India’s startup ecosystem is flourishing, with over 140,800 recognized startups reported as of June, creating approximately 1.6 million direct jobs. While not all of these companies will succeed, the dynamic environment provides opportunities for new entrants.
The country’s economic growth, which reached 8.2% in 2023 – the highest among large economies globally – is fueling this
entrepreneurial boom. Increased purchasing power and relatively low inflation compared to wage growth are creating favorable conditions for businesses.
Investor interest in Indian startups has also surged. Between 2015 and 2021, the number of unique investors in India nearly quadrupled, although recent years have seen a slight downturn due to global economic factors.
Government initiatives like the Universal Payment Interface system and Startup India program have further facilitated the growth of digital businesses and eased the process of company formation. Devyani Parameshwar, who returned to India in 2022 to launch a financial management venture, noted significant improvements in the ease of doing business compared to her previous experiences in the country.
For many returnees, the opportunity to address local challenges firsthand is a compelling factor. Rohan Bhide, who left a high-paying position at StubHub in the US to return to India, was inspired by the country’s rapid internet adoption and growing user base.
The startup culture in tech hubs like Bengaluru and Gurugram has evolved considerably, offering numerous networking opportunities and support systems for entrepreneurs. Dhruv Anand, who departed from Google to launch an AI startup in India, highlighted the helpfulness of the founder community in providing guidance and connections.
While challenges such as traffic congestion and air quality persist, many find the trade-offs worthwhile. The ability to hire affordable domestic help and the satisfaction of solving problems they personally relate to are among the benefits cited by returning entrepreneurs.
For some, like Niranjan Vemulkar, who founded a digital legacy planning platform after moving back to India in 2015, the decision to return was also influenced by a desire to raise children in proximity to family and cultural roots.
As India’s startup ecosystem continues to mature, it is likely to attract more expatriate talent seeking to capitalize on the country’s growth potential and contribute to its evolving business landscape.