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How will the Indian IT industry be impacted owing to proposed changes in H1B visa norms?

Controversy surrounding the H-1B Visa programme

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Controversy surrounding the H-1B Visa programme

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How will the Indian IT industry be impacted owing to proposed changes in H1B visa norms?
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Athira Sethu

Kochi, 4 January 2025

The H-1B visa programme of the U.S. has recently emerged as one of the major points of debate where the U.S. companies are permitted to hire skilled foreign workers. The Indian government is vigilantly observing the growing backlash against Indian professionals working in the U.S. under this visa. Ministries such as External Affairs and Information Technology are working in tandem to ensure that Indian workers legally employed in the U.S. are not targeted owing to the debate.

The programme has faced greater criticism, which is of more concern to the Indian authorities because some section of American society believe that foreign workers, especially on the H-1B visa, are snapping up jobs in America and paying lesser wages as compared to their American counterparts. Indian-American entrepreneur Sriram Krishnan’s recent appointment as a senior advisor to the White House for artificial intelligence sparked such debate where Krishnan’s critics believe that he supported policies favoring foreign workers.

Post this backlash, prominent voices like Elon Musk, CEO of Tesla and SpaceX have come out in the support of the immigration programme. Musk, who has personally benefited from the programme in the past, believes that skilled foreign workers are essential to the success of U.S. companies, especially in high-tech industries. He has advocated for reforms to the H-1B system, such as increasing the minimum salary for foreign workers to make it more expensive for companies to hire from abroad, but he still supports the overall purpose of the programme.

Musk’s comments reflect an important aspect of the debate, which is while some argue that H-1B benefits U.S. companies through access to much-needed skilled talent, others say it harms American workers by enabling businesses to replace them with cheaper foreign labor. Nevertheless, many U.S. tech companies — including major giants such as Microsoft and Amazon — are continuing to source their staffing needs in areas like artificial intelligence, cybersecurity, and software development through the H-1B programme.

All this controversy peaked during Donald Trump’s first presidency, when his administration implemented stricter rules on the programme. However, Trump has recently voiced his support for H-1B by calling it “great” and saying it benefits U.S. companies and the economy.

It is a very complicated debate surrounding the H-1B visa. On one side, it offers U.S. companies the talent they need to remain competitive on the global map. On the other side, critics argue that it undermines job opportunities for American workers. It will be interesting to watch how the situation evolves in the coming time.

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