Considering Domestic Relocation Within India

Over the last few years, we've seen significant growth in domestic relocation activity within India. Our client data shows nearly 50% growth in intra-India moves over just the past two years. Alongside this increase in relocation activity, there’s also a marked rise in financial investment per move. Last year, companies spent on average 454,604 INR ($5,308 USD) per relocation—just a slight increase over 2023, but a substantial 47% increase compared to 2022.

Historically, most domestic relocations in India have relied heavily on lump-sum payments or very limited benefit offerings. Today, this is rapidly evolving. Currently, 43% of relocations now include a comprehensive "full-service" benefits package.

Several factors are driving this shift. India's booming startup ecosystem, supported by government initiatives such as "Startup India," has created more than 1.6 million new jobs. This entrepreneurial surge, combined with India's economic growth, is accelerating talent movement across the country.

Yet, India's size and cultural diversity pose unique relocation challenges. Recognizing these complexities, AIRINC recently conducted their India Domestic Relocation Survey, collecting insights from 45 leading firms across technology, manufacturing, financial services, and other sectors.

AIRINC’s findings offer interesting insights:

• Approximately 6 in 10 companies manage intra-India relocations through their global mobility teams.
• Nearly 37% of companies handle domestic relocations locally via HR rather than through global mobility channels.
• From a policy perspective, 42% of companies use a tiered approach, primarily based on job level, family size, or relocation distance.
• Additionally, 26% of companies have adopted a core-flex approach, providing a combination of essential benefits and customizable options. At Plus, we've observed companies offering employees either specific relocation benefits or a lump-sum cash-out. There's also increasing interest in leveraging Point C solutions, offering employees flexible, credit-based benefit selections.
• Overall, AIRINC noted that 75% of organizations now incorporate flexibility into their relocation policies, allowing businesses to offer tailored support based on employee needs.

Despite these trends, traditional lump-sum payments remain relevant:

• 14% of companies still exclusively offer lump-sum payments, matching what we observe among our own client base.
• Of these lump-sum payments, about half require employees to handle income tax obligations themselves (no tax gross-up).
• Interestingly, 53% of companies combine lump-sum payments with additional provider-delivered relocation services—AIRINC calls this a “partial lump sum” approach, though we typically refer to it as a “lump sum plus.”

Additional notable policy insights:

• 93% do not assist with home-sale support.
• 63% provide no assistance for children’s education.
• Only 14% offer no temporary accommodation assistance; among companies providing it, the average duration is slightly over 3 weeks.
• 34% assist employees with rental accommodation expenses.
• 51% offer no housing support at the destination location.

As intra-India relocation continues to grow, companies are evolving from simple lump-sum programs toward more sophisticated, flexible, and employee-centric approaches. This shift not only reflects the diverse needs of talent in India but also positions companies to better attract, retain, and support their workforce in a highly competitive market.

Given India’s vast regional diversity and rapid economic expansion—especially within the startup ecosystem—it's likely this trend will continue accelerating. Organizations that proactively adapt their relocation strategies to offer targeted, flexible benefits will undoubtedly gain a strategic advantage in securing the best talent.