H-1B Visa - Positive Perspective

A legislation has been moved in US House of Representative to modify the rules for issuing H1B visa. As proposed, H-1B Visa will be provided to those non-immigrants who are offered minimum annual salary of USD 100,000 as against earlier USD 60,000.

H-1B visa is granted to non-immigrants mainly in the field of STEM (science, technology, engineering and mathematics) who desire to work in US. To protect the interest of US nationals, their government has conditioned that foreign nationals be allowed who are  ‘the best and the brightest’ in their fields to fill gaps in specialized areas that cannot be filled by Americans. The US Citizenship and Immigration Services (USCIS)   grants up to 85,000 of these visas each year. They’re open to a broad range of occupations and recipients who can stay in the country for up to six years.  This is a win-win position for both the US companies, who cannot find the skills they need in the domestic labor pool and need access to a global pool of STEM workers; and also for the foreign nationals since they do not get good opportunities in their home countries. It is the experience that H-1B professionals earn more than Americans in the same occupation and age group. 

Indian IT companies are feeling panicky as they will face problem sending their officials to US. As per a study, in 2014, almost 86% of the H-1B visas granted by US govt for computer jobs went to Indian workers-  majority of these H-1B holders work for companies such as Infosys and TCS. China was far second with just over 5% H-1B visas.

If we think in broader US and Indian perspective as to who will be beneficial with this change in H-1B visa rules.

US perspective:-

US companies are flourishing by hiring Indian professionals who not only work on lesser wages but also work like asses. If these professionals are denied entry in US, their companies’ profitability will be adversely affected. That is the reason big companies like Apple, Google, Facebook, Microsoft etc are opposing the move.

The Indian professionals working in US bring their families along, and their relatives often keep on visiting them.  Their absence will greatly impact the demand for consumer goods. Resultant, manufacturing and tourism  industry will slow down in US which is already reeling under meager economic growth.

Indian perspective:-

To achieve  ‘Buy American, Hire American’, the strictness on visa rules by US government  may not give desired results. Instead of hiring US nationals up to $100,000 an annum and Indians above this amount, US companies would prefer relocating their units to India. Their establishment cost will drastically reduce. Manufacturing in India will increase, thus ‘Make in India’ will get boost. Employment opportunities here will also increase.  

‘The best and the brightest’  Indians who are selected by US companies are promising, forward looking and have the capacity to bring positive change. They not only serve in  US, but   also work on their own start-ups. If  they come to India, after having enriched with overseas experience, they will have capabilities to make India Shining. What they require  is basic infrastructure and ease of doing business.

This is not adversity, but an opportunity for  India to encash upon this wrong decision of US.

Tilak Gulati, Assistant General Manager & Principal, UCO Bank

Author:  www.itstrgulati.blogspot.in