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If you plan to relocate to India with a green card before obtaining U.S. citizenship, it can significantly complicate the naturalization process. To apply for U.S. citizenship, you must meet physical presence requirements: at least 2.5 years in the U.S. over the last five years and no single absence of a year or more. If you stay outside the U.S. for over six months but less than a year, you may need to provide an explanation.
A re-entry permit (Form I-131) allows you to stay outside the U.S. for up to two years without losing your green card, but it does not help with citizenship requirements. Form N-470 can protect your eligibility in limited cases, such as working for a U.S. company’s foreign branch, but it does not guarantee naturalization.
If you stay abroad for more than a year, you will likely need to restart your five-year residency requirement (or four years and one day if a re-entry permit was used). While re-entry permits can be renewed in certain cases, they do not protect your citizenship timeline.
Best advice: Obtain U.S. citizenship first and then relocate, as naturalized citizens can live abroad indefinitely without affecting their status. Please consult your lawyer regarding this.

If you applied for a change of status (COS) while still in valid status—such as H-1B plus the 60-day grace period—you are not considered out of status while your application is pending. In this case, since you applied for H-4 within the grace period, the period between May (filing date) and December (approval date) is classified as an authorized period of stay, meaning it does not count as unlawful presence.

Even though the approval date is later, you are not subject to the three-year bar because you remained legally in the U.S. while the petition was pending. There are no negative implications for your status.
 

If you have time left on your STEM OPT but have won the H-1B lottery, you can technically opt for H-1B consular processing and continue using your STEM OPT. However, since 2023, this approach has become riskier.
The safer option is to proceed with an H-1B change of status. If you delay the H-1B activation and later face job loss, transferring the H-1B could be more complicated. While consular processing is still possible, it carries uncertainties. If it were my case, I would choose the change of status for a more secure transition.