India’s assertive diplomacy on H-1B visas and social security talks with US

India on Friday underscored the importance of the H-1B visa program, emphasizing its role in strengthening economic and technological ties between India and the United States. Amid rising debates on the future of the program, particularly with comments from President-elect Donald Trump and tech mogul Elon Musk, India reiterated that the mobility of skilled professionals remains mutually beneficial. Additionally, India is intensifying efforts to discuss Social Security Agreements (SSAs) with the US, aiming to resolve challenges for its professionals working there.

India’s Perspective on the H-1B Visa Debate

The H-1B visa is central to the movement of Indian IT professionals to the US, with India consistently being the largest recipient of these visas. In fiscal year 2023, Indian nationals received nearly 78 percent of the 265,777 H-1B visas issued by the United States, highlighting the importance of this program to both countries’ economies.

As the visa program faces scrutiny, particularly from figures like Trump and Musk, India remains steadfast in its support for the program, recognizing the mutual benefits it brings. During the weekly briefing on Friday (Jan 3, 2024), Ministry of External Affairs (MEA) official spokesperson Randhir Jaiswal stressed, “Our countries have a strong and growing economic and technological partnership, and within this ambit, mobility of skilled professionals is an important component.” He further noted that both nations benefit from leveraging each other’s strengths, particularly in technology, and that India is committed to further deepening the economic ties.

The H-1B visa program remains a vital mechanism through which the United States taps into India’s vast talent pool. India’s IT professionals not only contribute to the US economy but also bring competitive advantages to both countries, fostering innovation and growth in the global tech sector.

Jaishankar’s Visit to Washington: Strengthening Ties

S Jaishankar’s recent visit to Washington DC highlighted the ongoing evolution of India-US relations, focusing on the strategic partnership between the two countries. The trip allowed for discussions on a wide array of topics, including regional security, defense cooperation, and global trade. During his visit, the minister met with US Secretary of State Antony Blinken, National Security Advisor Jake Sullivan, and the incoming NSA Mike Waltz, as well as key members of the transition team.

In response to a question, Jaiswal elaborated on the visit, saying, “The visit to Washington DC was to review the advancement of the India-US comprehensive global strategic partnership over the last few years, which has strengthened across several domains.”

The minister’s visit also provided an opportunity for both sides to exchange views on current global and regional developments. With shared priorities in the Indo-Pacific region and the fight against climate change, the trip reaffirmed the value both countries place on their partnership.

India Pushes for Social Security Agreements (SSAs) with the US

While the H-1B visa program remains a priority, according to reports, India is also looking to address the challenges faced by its professionals working in the US in terms of Social Security. Indian nationals on H-1B visas contribute to the US Social Security system but are ineligible for benefits due to a 10-year work requirement. Many Indian IT professionals often return to India before meeting this requirement, leading to significant losses in social security contributions, which amount to over $1 billion in unutilized payments, according to industry bodies like NASSCOM.

To address this, India is seeking a comprehensive Social Security Agreement (SSA) with the US, which would allow Indian workers to avoid double taxation on social security contributions in both countries. Furthermore, the agreement would enable workers to transfer their contributions between systems, ensuring that Indian professionals are not penalized for their international mobility. India is also advocating for a “totalization agreement,” which would integrate social security benefits, ensuring professionals receive the benefits they have earned.

Currently, India has operational SSAs with 19 countries, including major economies like Canada, Japan, and Germany. The aim is to secure similar agreements with the US, which would provide greater financial security to Indian workers. Negotiations on SSAs are expected to be prioritized with the incoming US administration, with a focus on removing the 10-year eligibility barrier and ensuring Indian workers’ contributions are fully recognized.

Strategic Implications and Moving Forward

As both countries continue to enhance their cooperation, India’s strategic diplomacy will be key to resolving longstanding issues like social security contributions while continuing to support the free movement of skilled professionals. With both the H-1B visa program and the SSA discussions, India is laying the foundation for even deeper economic, technological, and diplomatic ties with the United States in the years ahead.