The H-1B visa program facing challenges due to the shift from a lottery-based system to a wage-based model, driven by "America First" sentiments. This could accelerate India's brain drain but also spur domestic innovation and localized business models. The debate calls for strategic policy responses to protect the diaspora and leverage skilled workforce for national development.
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Picture Courtesy: INDIAN EXPRESS
The U.S. Commerce Secretary has criticized the H-1B visa program and advocated for hiring American workers, quoting that over 70% of all H-1B petitions since 2015 come from Indians.
It is a temporary, non-immigrant visa that allows U.S. employers to hire foreign workers in specialized fields, require at least a bachelor’s degree or higher in related specific field.
Duration: Valid for an initial period of three years, can be extended for another three years, for a total maximum stay of six years.
Dual Intent: Temporary visa which provide visa holders the option to apply for permanent residency (a Green Card).
Annual Cap: 85,000 H-1B visas; 65,000 visas under the general cap and an additional 20,000 reserved for individuals who have earned a U.S. master’s degree.
Lottery System: U.S. Citizenship and Immigration Services (USCIS) uses a lottery system to select eligible candidates.
Addresses Skill Gaps: Launched in 1990 to help employers acquire business skills and abilities unavailable in the domestic workforce - filling talent gap in the U.S. labor market.
Drives Innovation: Skilled immigrants boost innovation and productivity within the U.S. economy, maintaining the U.S.'s competitive edge in global markets.
Supports Industries: Companies in technology, engineering, finance, healthcare, and research, have benefited.
Strengthens International Partnerships: Promote a strong "people-to-people link" between the U.S. and countries like India, enhancing soft power of US.
Dominance in the Program: Indians are the largest beneficiaries of the H-1B program, accounting for more than 70% of all H-1B petitions approved each year since 2015. China comes 2nd with 12-13% since 2018.
Economic Contributions: Indian H-1B workers contribute to the Indian economy via remittances.
IT Sector Growth and Outsourcing: American companies find difficult to substitute Indians with equally skilled American people, reason for Indian dominance.
Bilateral Relations: Serves as a strong "people-to-people link" between the U.S. and India, supporting their strategic partnership in technology, healthcare, defense, and economic initiatives.
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Brain Drain vs Brain Gain Debate Brain Drain Concerns: Higher salaries and advanced career opportunities in the U.S. draws highly skilled professionals away from their home country. Potential for Brain Gain: Restrictions or changes to the H-1B program, such as increased scrutiny or altered allocation methods, could lead to a "reverse brain drain".
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U.S. Criticism: Aligns with anti-immigration rhetoric and accusations that the program undercuts American workers.
Political Polarization: Immigration remains one of the most divisive issues in U.S. politics, with the discourse shifting from illegal immigration to programs like H-1B.
Wage Disparities: Critics allege that American corporations use H-1B visas to hire overseas talent at cheaper costs than what it would take to hire native-born U.S. citizens.
Wage-Based Selection System: Replacing the lottery with a wage-based selection system, ranking and selecting registrations based on the highest wage level.
Increased Fees: H-1B registration fee increased from $10 to $215.
Diversify Job Opportunities Domestically: Strengthen domestic R&D and start-up ecosystem to diversify job opportunities, provide options to talented India, however, it could impact remittances but in the long run develop Indian IT and start-up ecosystem as a global hub.
Cooperating with US: India supports legislative efforts, such as the Equal Access to Green Cards for Legal Employment (EAGLE) Act, to eliminate the per-country cap on employment-based green cards.
Promoting Bilateral Mobility: Promote bilateral skilled mobility agreements and remote work frameworks with other countries, to expand opportunities for Indians.
Bilateral Negotiations: Strengthen bilateral engagement with the U.S. on immigration issues to recognize the mutual benefits of skilled migration.
Diversification of Markets: Indian IT sector should reduce its dependence on the U.S. market. Current H-1B restrictions could push professionals towards opportunities in other regions like Canada or the EU, or encourage remote work models.
Promoting Reverse Migration: Create opportunities to attract skilled professionals back to India, encouraging tech innovation, could lead American firms to engage more directly in the Indian market rather than bringing Indian talent to the U.S.
Source: INDIAN EXPRESS
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PRACTICE QUESTION Q. With the shift towards a wage-based H-1B visa allocation, discuss how this will affect India’s aspiring talent pool and its IT majors. 150 words |
The H-1B visa is a temporary, non-immigrant visa that allows US employers to hire foreign workers in specialty occupations requiring highly specialized knowledge and at least a bachelor's degree or its equivalent.
The annual cap is 85,000 visas, comprising 65,000 for the general cap and an additional 20,000 reserved for individuals with a U.S. master’s degree or higher.
People born in India are the largest beneficiaries, consistently accounting for over 70% of all H-1B petitions approved each year since 2015. People from China come second, with around 12-13%.
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