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Nayan,
Its my understanding that the migration tool was designed as a standalone application that uses the public api of the platform to import data into to it. As you say this is very useful for smaller to medium sized migrations. If faster migrations are needed for certains areas people always have the option of using other techniques or tools.
My question here is why have the UI part of the data import tool joined in with the community app?
If you always want to utilize it as a bulk upload feature, then i would argue that the bulk upload APIs could/should be part of the core platform if theres a typical need for them.
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