Financial Conditions in India



My Name is Vali and i am currently in NY. I am living in united states past 5 years and i have determined that this not the place for me very soon for a variety of reasons as mentioned by many people in this group. However my idea of coming up with this new topic is different.

I have plans to return to India in mids of 2019. There were a many personal parameters that i considered while making this decision. But due to recent financial situations in India, things are forcing me to rethink about my decision. Below are the few concerns that are constantly rotating on top of my mind everyday. They really bother me a lot.

  1. Demonetization impact : The cash situation in India has taken a terrible direction after the so called “demonitisation” which is proved to be “no good”. This sparked up the downfall of GDP and many other financial parameters. I have been hearing from many friends and family back home that the current monthly expenses have increased more than 70% percent since last year. We never know or have any control until how far we have to go.

  2. GST: The next terrible thing which came up early this year was GST which is again proved to be “no good”. With the kind of mindset that the businesses have grown up in India, people started charging additional GST on hiked categories and continuing to charge the regular costs on subsidized categories in-spite of reducing the prices. I know this is a very cheap mentality that we as Indians have grown up with but without any control this can lead to disasters.

I know it is a disastrous and unplanned govt policies that we all Indians are going through. I am worried for myself and my fellow Indians who wanted to move back to India because we never know what kind of new policies can come up anytime and ruin our lives. If i never had an opportunity to live in US than it would have been a different case but in-spite of having an option to live in US for rest of your life, do you think is it of wise to move back to India ??

I would be really be very thankful and appreciate your opinions with regards to this financial crisis in India. Anyone who has already moved and would like to share your experiences would be a lot helpful.



Hi Vali,

I think this has to be a very personal decision. It has been so for many who already returned. The reason is that, you cannot really control Govt. policies or external factors as those. Not only in India, in US too. If you do a tally of what’s good and what’s not, there are too many things on either side, and in US and India. None of which you have control over. These are uncertainties that you have to deal with.

However, what is in your control (comparatively) is your income, what you want to do in life, what lifestyle you follow etc. These decisions if made once, will shed light ahead of you and leave away with uncertainties to an extent. For example, you can decide which city to live in, what profession or job to take, whether to work for others or start on your own, what kind of neighborhood to live etc. I think these are more important questions to ask.

Having said that, yes there are policy changes and new rules being introduced on both sides (say Visa changes etc in US) that you have to cope up with.

I would say, think 15 years ahead, see where you want to be. Compare your options with US and India based on your current, controllable resources, and take a call accordingly. That is safer and wiser in my opinion.

Hope that helps. :slight_smile: All the best!


I too see that if you have a place to live in India (your parents house or where you can buy a house to live) then would say that invest in a good house.
Then the financial stability matters. You have to have a good steady finance as each day there are numeruos policy changes. The only way to cope with this is rewind back to the 1980’s where you spend money by cash mode. As the current Govt is focussing heavily on the cashless system, there is a catch. This affects mostly everyone. Every Bank charges GST and other state taxes for every transaction that has been made. Good to send cash to the bank account and withdraw the money for expenditure.

Dont give control to someone your financial matters.
Use the cash system and try to avoid eating at Hotels (this way you save)
This way you control your finances (cash only).

Try to avoid purchase using the cards.(debit or credit).
Every little money that save helps local community shops etc.

The control is in your hands. How you play depends on you.