Despite the United States’ starkly vehement stance against H-1B visas in an ‘America First’ ideology era, India is standing its ground. Defending not only skilled workers but also legal immigration at large, the South Asian government spoke out against any other narrative arising on the front after US President Donald Trump’s severe overhaul of the nonimmigrant work visa category and stricter rules.
Speaking to reporter at a briefing in New Delhi, Randhir Jaiswal, spokesperson for India’s External Affairs Ministry, said this week that economies of both India and America have long gained benefits from the skilled worker flow thanks to H-1B visas.
India on H-1B visa changes, legal immigration in the US
“Skilled talent mobility and exchanges have contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the United States and India,” he said. Responding to a question on the new H-1B changes announced by the Trump administration, he added, “This is still an evolving situation and we remain engaged at various levels.”
This response comes the same week as “constructive meetings” led by Commerce Minister Piyush Goyal were happening in the US while both countries struggled to settle on a potential trade deal amid Russia’s war in Ukraine. On top of that, it follows days after the American president signed a proclamation imposing a $100,000 fee on new H-1B applications.
Trump’s decision will significantly impact people from the South Asian country more than any other group, especially since more than 70% of H-1B visa recipients were Indian nationals last year.
Dark hour for Indian IT professionals, industry
With $280 billion backing the nation’s tech industry, thousands of job have now been shrouded in uncertainty as the US government is keen on prioritising American workers. Employees are expectedly envisioning this as yet another fracture that will lead to their undoing amid IT cutbacks, layoffs and whatnot.
Many US lawmakers continue to rant about the skilled talent visa category on social media, some calling out H-1B “visa abuse,” while others describing it as a “scam” toppling opportunities for American professionals.
Earlier this month, Republican US Senator Eric Schmitt even went as far as blaming legal immigration. “The H-1B visa was sold as a way to keep America ‘competitive,” he wrote online. Noting legal immigration “can harm Americans too,” he added, “Instead, it imported millions of foreign nationals to replace American workers–and transferred entire industries into the hands of foreign lobbies.”
The signs of the visa overhaul shockwaves impacting the employment scene are already showing. Bloomberg reported this week that a software exporters in India are now bracing for the worst week since April, with the H-1B fee taking a toll on their earnings.
A number of IT shared on the National Stock Exchange of India Ltd fell 5.6% this week through Thursday, marking the most concerning slump in nearly six months. On a while, the ten members on the Nifty IT Index have lost out on over $21 million in market value this week alone. Tata Consultancy Services Ltd and Infosys Ltd contributed to the majority of the downfall in focus.