India’s brain drain easing? Why more tech workers are coming home – and the challenges they face

India's tech workforce is increasingly returning from overseas, driven by factors such as immigration uncertainty and new opportunities available domestically. However, industry experts warn that retaining these professionals could prove challenging due to gaps in pay, research funding, and access to cutting-edge work compared to their experience in the United States.

Nithin Hassan, a 43-year-old former Meta employee, returned to Bengaluru in 2024 after nearly two decades in the U.S. He cited concerns over immigration restrictions and the high cost of living as reasons for considering India as a better option to extend his runway. Hassan went on to co-found an AI startup in Bengaluru, joining a growing trend of Indian professionals returning home after working overseas.

According to recruitment firm Xpheno, the number of Indian white-collar professionals returning from overseas grew by about 24% in 2024 and 5% in 2025. Additionally, 205,000 have returned so far in 2026, representing a 17% increase compared to all of 2025. The firm tracks professional movements on LinkedIn and estimates these figures based on this data.

India still saw more white-collar professionals move overseas than return, but the gap has narrowed. In 2023, three professionals left for every one who returned, compared to about two departures for every returnee in 2026. The United States is the largest source of returning Indian professionals, accounting for 72% of returnees tracked by Xpheno in 2026. Other countries, including the United Arab Emirates, United Kingdom, Canada, and Saudi Arabia, also contributed to this trend.

While the data does not explain the reasons behind individual workers' decisions to return, tech executives attribute the trend to immigration and employment uncertainty in the U.S. This uncertainty has been exacerbated by the tightening of the H-1B program in 2025, which favors higher-paid, higher-skilled applicants and imposes a US$100,000 fee on certain new visa applications. Indians are particularly affected, accounting for 71% of approved H-1B visa applications in fiscal year 2024.

The U.S. State Department's decision in May to increase the waiting period for employment-based green cards has also added to the uncertainty surrounding returning Indian professionals. Despite these challenges, India is seeking experienced talent to build its artificial intelligence and semiconductor sectors. However, attracting and retaining such workers remains a significant challenge, as India currently cannot compete with the U.S. on compute resources, research funding, or dollar-denominated compensation.

Experts suggest that India must find alternative ways to compete with the U.S., focusing on impact and opportunity. Amit Sheth, founding director of the Indian AI Research Organization (IAIRO), emphasizes that India must capitalize on the experience and expertise gained by returnees to make up for the lack of such resources domestically.

For returnees considering a move back to India, there are both opportunities and challenges to navigate. Sudeepa Kolli, a 25-year-old former Cornell University student who returned to India last week, highlights the immigration uncertainty that influenced her decision. She also mentions her desire to pursue side projects and create online content without worrying about visa restrictions in the U.S. However, Kolli notes that her instinct to create something while working for a U.S. software firm was often tempered by the fear of violating her visa terms.

Returnees may face trade-offs when seeking jobs in India. According to entrepreneur Nithin Hassan, Indian employers may struggle to match the compensation and facilities offered to returnees, making it difficult for these professionals to attract and retain their services. Hassan emphasizes that employers may not see an advantage in hiring returnees unless they possess specialized skills or overseas market connections that are difficult to find locally.

Kamal Karanth, co-founder of Xpheno, estimates that a mid-level employee moving from a major U.S. tech firm to an equivalent role in India could earn about one-sixth of their previous compensation, depending on various factors such as the company, location, and experience. Indian employers have become less inclined to match overseas packages, and returnees are generally expected to accept local pay.

However, those with proven expertise in advanced AI skills may command a premium due to the limited domestic pool of such talent.

India possesses a wealth of talent, but it currently lacks sufficient individuals with extensive experience in advanced AI and other cutting-edge fields. The challenge for India lies in leveraging the experience and expertise gained by returnees to bridge the gap between its domestic talent pool and the global standards set by the U.S. and other countries.