H1B visa holders not coming back to India: US-based Indian investor explains why ‘reverse brain drain’ is unlikely

Vaibhav Domkundwar has shared his thoughts on LinkedIn about why attracting H1B visa holders back to India is not a simple plan. He compared it to the early problems faced by Indian SaaS companies. It is a poor understanding of what people actually want, according to the San Francisco-based venture capitalist.

Most H1B holders in the US have built stable lives with homes, families and schools for their children. They are not chasing “better opportunities” but prefer stability and continuity, he wrote.

According to him, only a small group may be entrepreneurial enough to return for opportunities like AI or D2C in India. Domkundwar stresses that moving back to India is not easy and definitely not about money or jobs.

“Sure, not everything is in their control but they aren’t looking to abandon their lives due to that and find new footing,” he wrote on LinkedIn.

“Most “work to live” and are looking to continue their journeys. Without understanding this, it is perhaps hard to pin a “reverse brain drain” plan solely on preaching H1Bs to leave and come back,” he added.

“Moving back to India is non-trivial to say the least. And it’s definitely NOT about better opportunities,” he further wrote.

Vaibhav Domkundwar is the Founder-CEO of Better Capital, a venture firm in San Francisco that invests in Indian founders for local and global markets. He earlier built Roamware and Better Labs. Vaibhav has backed 200+ startups, including Khatabook, Open and Teachmint.

In his LinkedIn post, Vaibhav Domkundwar added a screenshot of what he wrote on Twitter (now X) on September 21.

“No one is coming back, folks. Take it easy ...was hilarious to read 1000s of intelligent but premature (and selfish, of course) ‘welcome back to India’ posts,” read the X post.

“Home prices in Indian metros will remain the same ...and the overall TAM for pants to cars remains the same too,” the post added.

What is H1B visa?

The H1B visa is a US non-immigrant visa that lets employers hire foreign workers in specialised jobs. These jobs need expert knowledge and at least a bachelor’s degree.

The H1B visa situation got complicated after the US government, led by President Donald Trump, imposed a $100,000 (more than ₹88 lakh) fee on new visa petitions from September 21.

Panic spread among Indian workers, who hold over 70% of H1B visas. Later, US officials clarified that the fee would be applicable only to new visas, not renewals.

It is employer-sponsored, meaning a company must apply for the worker. The visa allows an initial stay of three years, with the option to extend to six years.