Most people go to US from India primarily to save, because the currency conversion rate helps.
There are pro’s and con’s to the above comparison:
1. Low corruption rate ensures that what you pay for gets returned to you. (there is corruption everywhere, but to what degree is what matters)
Here are some global perception stats:
2. Better life / lifestyle:
– You don’t have to deal with the basic problems of life like no water, no electricity, load shedding, pot holes , smell , pee etc.
– Things of daily use are cheaper, like vehicles and fuel. An avg Indian guy who just started his job in IT will take a while to save up to get his 1st car, this time is in years. In US you can get a very good second-hand car in your third month itself, because they go as cheap as 5000 – 7000 USD. And there isn’t a social stigma in getting a second hand car, like in India, which leads to better savings
– There is less social pressure. (you don’t need to get married right away, once you get married, your savings or the rate of saving per month will decrease)
3. Time compression, for a person who eventually wants to return to India once he has saved enough, explained with an example below:
If a person works for 5 years in India with a package of lets say 5 Lakhs INR (500k) which is roughly 7,877.12 USD (1 USD = 63.4750 INR via
For sake of simplicity, I’m not cutting tax, values below are in INR with 5% added each year till the 5th year.
1st year: 500000
2nd year: 525000
3rd year: 551250
4th year: 578812.5 <promotion>
5th year <after promotion>: 700000
Total made in 5 years: 28,55,062.5 INR or 44,979.34 USD
An avg software engineer will start at 60-70k USD and can reach 80-90k+with 5 years of experience.
So, it will take you 6-7 years to make as much as a US engineer makes in one year.
You don’t have to be a mathematician or MBA grad to figure this out. Any person who can multiply and add, can understand that a US based engineer would and can make the same amount of money in 1/6th the time.
If you wanted to save as much, apply to a US based college to do your masters or wait to go onsite.
Now the dark side:
- Most US based software companies with Indian offices give onsite opportunities, this is the best when you want to save a lot of money and come back to India without any debt. And not all engineers are good:
- If you want to STAY, you will have to live with the following: A typical Masters can cost around 50-60k or even more for MBA (also depends on the tier of university/college/specia
lization). Once your done with your Masters, you get a temporary H1B visa. If you lose the job or have to leave for emergency reasons, you lose the Visa’s grant to get your job back in the US. No one would want to leave the states after atleast making the 60k USD back from the job. Its only profit if you got your money back.
- H1B is bonded labour in disguise if your applying for US green card, you or your dependent can’t just get up and leave while your green card is in process. Hence you lose your career freedom if you don’t like your job or wish to settle elsewhere.
- Indians in the above situation miss out on Indian festivals and important occasions always. Their spouses can even get homesick.
- A H1B dependant (H4 category) can’t work. So if your wife has nothing to do but to watch series or some other form of time wasting activity, eventually he/she would be quite bored. And if the spouse was having a good stable career in India, and was wishing to continue the same would lead to both being apart or if they choose not to, one of their career’s has to be sacrificed for the sake of financial freedom.
- They spend a large sum of their income on medical insurance , expenses and medicines which cost pennies in other countries.