January 7, 2025
📰 FEATURE STORY
Has the H-1B visa programme been worth it?
In an increasingly polarised world where populism is resurging, immigration will be front and centre. It’s often been a lightning rod for political debate. In the US, Donald Trump’s return to the White House is a triumph for his backers and the Make America Great Again movement. But their unity is being tested, and immigration is at the centre of it.
The H-1B visa program, which allows highly skilled professionals to work in the US, has benefited Indians. Some loyalists are angry with others over their stance on immigration. It boils down to “we’re letting too many people into the country through the programme.” The H-1B visa policy is a boon for many Indians, but has it been a net good?
Context
Like many countries, the US labour market has gaps that need to be filled, particularly in science, technology, engineering, and mathematics (STEM) fields. Every year, US companies seeking highly skilled foreign workers compete for the pool of H-1B visas.
This policy dates back to when President George HW Bush signed the Immigration Act of 1990 and introduced the H-1B visa programme. The idea was to help American companies fill vacancies in specialised roles with foreign workers.
Here’s the process. Each application is submitted by a sponsoring company that foots the bills on behalf of a candidate. The limit is 65,000 per year. An additional 20,000 visas are granted to employees with master’s degrees from American universities. If the applications exceed the cap, there’s a lottery to see who gets to stay. A note to point out here is that 6,800 visas are reserved for Chile and Singapore in keeping with free trade agreements.
The programme has garnered controversy over the years. Americans were becoming increasingly uneasy with more foreign workers taking up their jobs. It has fueled right-wing talking points about the need for stricter immigration policies.
Indian-origin technology companies make up a significant portion of the visas issued. Analysis by the US immigration department has shown that it’s about a fifth, with Infosys and TCS leading the way. From April to September 2024, out of 1.3 lakh H1B visas issued, 24,766 were given to Indian-origin companies.
During his first term, Trump didn’t like the programme and introduced restrictions in 2020. Through an executive order, he froze the distribution of green cards and temporary worker visas through the end of the year. It was in keeping with his “America First” slogan.
That’s now changing with supporters like Elon Musk and Vivek Ramaswamy vouching for the visa programme. The appointment of Indian-American Sriram Krishnan as Trump’s senior AI policy advisor sparked discussions about removing country-specific caps.
This debate will play out in the coming months as Trump prepares to take office. Has the programme fulfilled its goals?
VIEW: It’s a necessary programme
The current debate and posturing around the issue are political and devoid of facts. Technology and business leaders have maintained that they can’t do without qualified professionals from other countries. People like Musk know the importance of hiring skilled foreign workers for the economy. Also, immigrants on H-1B visas actually benefit Americans.
According to many economists, immigrant workers in the US create new job opportunities for native-born professionals. The big reason is that both groups have different skill sets, so they fill various types of jobs. They actually complement each other in the labour market rather than compete. As foreign workers settle and earn money, they spend and invest wages in the local economy, increasing demand and creating new jobs. All in all, unemployment rates are relatively low in roles that employ large numbers of H-1B workers.
The movement of skilled workers between both countries is part of the Indo-US relationship and benefits both countries. India is clear on this stance. It has helped economically and in technological partnerships and collaborations. For the fiscal year ending September 30, 2023, India received approximately 78% of the 265,777 H1B visas issued. This underscores the role that Indian professionals play in the US economy.
COUNTERVIEW: Not all that good
It’s not an exaggeration to say that public sentiment on immigration has shifted. While several US politicians have spoken out about companies “replacing” American workers with foreign ones, a recent poll showed 60% of voters think the US doesn’t need more H1B visa workers. Only 26% favoured hiring more foreign workers for higher-skilled jobs. This showed that the programme needs to be reformed.
While the policy has good intentions, it has been gamed by companies. For starters, hiring foreign workers is often cheaper. In recent years, global outsourcing companies have dominated with tens of thousands of visas. Many Indians, for example, are willing to accept lower pay than their American counterparts. Companies save on wages while offering attractive salaries compared to what they would get in India. In 2023, 70% of H-1B petitions for Indian professionals were under $100,000 per year. The average IT salary in the US was around $104,000.
The programme became a cornerstone for Silicon Valley to meet its demand for cheap labour. While it has been centred on maintaining America’s technological superiority, the policies have exposed exploitative labour practices. The notion that this programme should be a symbol of pride for India must be dispelled. They rest on systematic inequalities and exploitation of labour in India’s IT hubs.
Reference Links:
- The H-1B Visa Program and Its Impact on the U.S. Economy – American Immigration Council
- Why H-1B visa is in MAGA crosshairs – New Indian Express
- With all the debate around H-1B visas, is the American Dream under threat for Indians? – The Economic Times
- H-1B visa row brings in differences between Indian and American rights – The Indian Express
- H-1Battle for America is Trump’s first challenge – The Print
- How Outsourcing Companies Are Gaming the Visa System – The New York Times
What is your opinion on this?
(Only subscribers can participate in polls)
a) The H-1B visa programme has been worth it.
b) The H-1B visa programme hasn’t been worth it.
Previous poll’s results:
- The Q-commerce race is good for the sector: 27.3%
- The Q-commerce race is bad for the sector: 72.7% 🏆
🕵️ BEYOND ECHO CHAMBERS
For the Right:
The power imbalance between Indian corporations and consumers is growing every day
For the Left:
Why rising powers like India must now adopt amorality as the norm