NRIs moving from the US to India: How much salary to expect

‘Madhuri Dixit to return to India, bag, baggage and doc in tow’

After staying in the USA since 1999, Madhuri Dixit will be moving back to India.

Dixit moved to Denver, US, after she married surgeon Shriram Nene in 1999, but visits India to work fulfill her commitments and assignments. They have two sons Arin and Ryaan. Dixit, 44, said that she and her husband would like their sons to be raised in India.

"It would be a great experience culturally for them. This is where their roots are. They are at an age where they can adapt quickly. They’ll be giving up their friends here [in America], but they are looking forward to making friends there [India]. I want them to learn Hindi and Marathi. I think it will be an exciting time for them too,” she said.

That story probably made news only Madhuri Dixit because of its star power. The fact that NRIs from the US are moving back to India is no shocking development. NRIs have, in the last few years, been relocating to India in large numbers, in search of better personal and professional lives. And if you are an NRI considering that move, there is one important thing that you must understand very well: the salary you will get in India.

Kris Lakshmikanth, Founder CEO of The Head Hunters India Pvt Ltd. says, “When it comes to compensation, we find that NRIs have inflated expectations. They mainly go by hearsay; their friend or friend’s friend who returned to India has told them a tall story about Indian salaries. They want to go by that yard stick.”

USD will not convert to INR

The first thing to remember is that you will not make the rupee equivalent of your US salary in India. The cost of living in India is significantly lower than that in the US. This also means a lower labour cost in India. These factors will determine your India salary.

Achyut Menon, head of Options Executive Search Pvt Ltd also adds, "In the nineties, people who were posted to India got expat salaries. But those days are over. In the last 10 years, India has become an attractive market for global companies who are not just looking to set up offshore centers here, but also to capitalize on the growing, educated and highly aspirational middle class consumer

segment. Added to that is the availability of skilled labour within India itself. Companies no longer need to pay expat salaries.”

According to the last available index dated July 2011, a Big Mac costing USD 4.07 in the US costs USD 1.89 in dollar terms in India (Rs 85 converted at an exchange rate of Rs 45). It means that the ig Mac costs 54% less in India; the cost of living is 54% lower in India. Read another way, this means that the rupee is undervalued by 54% to the dollar and that on the basis of PPP, one dollar would actually be worth Rs 21 instead of Rs 45.

So if you are drawing a salary of USD 100,000 in the US, you can expect to draw Rs 21 lakh in India, give or take.