Returnee NRIs Driving India’s Start-Up Boom

The trend of US-based NRIs returning to India has accelerated since 2017, and stems from shifting visa regulations abroad, booming opportunities at home, and a deep desire to reconnect with family. It intensified due to tighter scrutiny of H1B visas, stricter immigration policies, and uncertainties about Green Card renewals in the US.

Most returnees are professionals with eight to 15 years of experience abroad, typically in their late 30s to mid-40s, equipped with global networks and expertise.

Family ties remain the strongest motivator. About 75 per cent of returnees cite the desire to be close to ageing parents and to raise their children in a culturally familiar environment. The vibrant family life in India is a powerful draw, especially compared with the isolation often felt abroad.

Vivek Deshmukh, who returned to Hyderabad after 16 years and founded Innovara Technologies, noted the importance of children growing up around grandparents and cultural traditions.

Elite American universities have also warned of a decline in international student enrolment.

India's economic growth is another key factor. The country’s 7.2 per cent GDP growth in 2023, along with rapidly expanding tech, healthcare, and fintech sectors, makes India an appealing destination. Surveys show nearly 60 per cent of NRIs in major Western nations considered returning in 2023 and 2024. Though exact migration figures remain elusive, qualitative evidence points to ongoing significant reverse migration.

The returnees are driving India’s start-up revolution, both as founders and as investors, channelling strategic diaspora capital into start-ups. NRI investment rose 23 per cent year-on-year, reaching $14.55 billion between April 2024 and February 2025.

Prominent returnee founders include Kunal Bahl (Snapdeal), Swati and Rohan Bhargava (CashKaro), Raj Darji (Aarav Solutions), Kishore Indukuri (Sid’s Farm), Sameer Maheshwari and Prashant Tandon (HealthKart), Ambarish Gupta and Pallav Pandey (Knowlarity), Hitendra Chaturvedi (GreenDust), Vidit Aatrey (Meesho), and Sachin and Binny Bansal (Flipkart).

Many faced visa obstacles or career stagnation abroad, but turned those challenges into opportunities. Their diverse ventures are introducing novel business models and advanced technologies. India’s maturing capital markets, streamlined regulations, and supportive policies have encouraged “reverse flipping” — start-ups initially registered overseas relocating their headquarters back to India for better IPO prospects. Razorpay, PhonePe, and Meesho exemplify this trend.

Returning IT and business professionals increasingly choose entrepreneurship for its autonomy and the chance to leverage global experience. Rather than returning to traditional corporate roles, many find India’s start-up ecosystem — characterised by venture capital, incubators, and a progressive culture — more conducive to innovation. The environment is now nearly as dynamic as Silicon Valley for tech talent.

Amulya and Rishika, representatives of the Hyderabad Innovation Collective (HIC), a community hub supporting collaboration among entrepreneurs, investors, and innovators, say they have been receiving strong interest from NRIs and assisting them in sectors such as healthtech, fintech, AI, and deep tech through mentorship and resources.

The reverse brain drain is a transformative phenomenon. Returnees bring advanced skills and international networks, mentor domestic entrepreneurs, and help build entire ecosystems — particularly in AI, clean energy, biotech, and advanced manufacturing. Despite bureaucratic integration challenges, many are overcoming them by partnering with local co-founders. These returnees are central to making India’s start-up ecosystem globally competitive, steering the country towards new heights in tech leadership and economic growth.

Stories of those planning to return resonate strongly. Sanjay Rao and Vedasri, tech professionals from Austin, say, “We want our kids to grow up around grandparents, and India’s thriving start-up culture values our experience.” Their friend Vivek Reddy adds, “Visa uncertainties make stability abroad doubtful. I seek the excitement India offers.” Aarti, relocating from Tempe, Arizona, shares, “India promises creative freedom, autonomy, and support networks I’ve long missed. Seeing other returnees lead India’s innovation inspires me.”

REVERSE BRAIN DRAIN

Nearly 60% of NRIs in major Western countries considered returning for family, career, and lifestyle reasons.

Returnees usually have 8-15 years of experience abroad and are often in their late 30s to early 40s.

Family ties motivate about 75 per cent of returnees, particularly to support parents and provide a culturally rich upbringing for children.

Visa and career uncertainties abroad, growing opportunities in India, and better quality of life drive returns.

Reverse brain drain accelerates tech innovation, economic growth, and global competitiveness for India.

NRI ROLE IN START-UP ECOSYSTEM

India’s start-up ecosystem houses over 159,000 DPIIT-recognised start-ups and more than 110 unicorns as of January 2025.

NRI returnees form 25% of the start-up ecosystem and play vital founder and investor roles.

NRI investments surged 23% year-on-year, totalling $14.55 billion from April 2024 to February 2025.

Leading returnee-founded start-ups include CashKaro, Aarav Solutions, Sid's Farm, HealthKart, Knowlarity, GreenDust, TringMe, Mitra Biotech and, earlier, major ones like Snapdeal, Flipkart, Meesho.