INDIANS AND H1-B
1. Context
Weeks before he returns as US President, Donald Trump’s supporters are locked in a public row about skilled immigration and H-1B visas
2. What is H1-B Visa?
- The H-1B visa program for skilled workers was introduced in 1990. These visas are initially issued for three years but can be extended to a maximum of six years.
- Since 2004, the issuance of new H-1B visas has been capped at 85,000 annually, with 20,000 reserved specifically for foreign students who hold master’s degrees or higher from U.S. universities.
- This cap, however, does not apply to certain entities like universities, think tanks, and other non-profit research organizations, allowing additional visas to be issued beyond the limit.
- Applicants for H-1B visas must have a job offer from a U.S.-based sponsor, such as a company or institution. The U.S. government also grants extensions for individuals already working under H-1B visas.
- During the fiscal year 2023 (October 2022 to September 2023), over 386,000 H-1B applications were approved. This figure includes nearly 119,000 new visas and approximately 267,000 extensions.
- The total number of approvals in 2023 reflects a decline from over 474,000 in the previous fiscal year, 2022
3. Immigration in US
- Immigration remains one of the most divisive political topics in the United States. An October YouGov poll revealed that 14.6% of registered voters considered it the most critical issue in the upcoming election, a significant increase from just 2.1% in 2012.
- During election campaigns, much of the anti-immigration discourse centered on low-skilled labor migration. Beyond its inherent racial undertones, this narrative is driven by the perception that such immigration lowers wages and displaces jobs that might otherwise benefit the American working class.
- This demographic has long struggled with challenges like high unemployment, stagnant wages, inflation, a housing crisis, and other economic difficulties.
- Donald Trump effectively leveraged these concerns, pledging to improve conditions for the average American worker by restricting immigration.
- The current debate echoes many of the same themes as Trump’s rhetoric about Mexicans "stealing American jobs," though the focus has shifted to the immigration of skilled workers competing for higher-paying positions
4. Visa for Skilled Workers
Source: USCIS
- The H-1B visa program enables U.S. employers to hire foreign workers for roles requiring "a high level of skill" and "at least a bachelor’s degree," as outlined by the U.S. Department of Labor.
- Established in 1990, the program was designed to assist employers in filling roles that demand specialized skills not readily available within the U.S. workforce, allowing qualified foreign individuals to work temporarily in the United States.
- H-1B visas are typically issued for a maximum of six consecutive years. After this period, visa holders must either leave the U.S. for at least 12 months before returning or apply for permanent residency (a Green Card).
- Currently, the program has an annual limit of 65,000 new visas (the regular cap), with an additional 20,000 visas available for applicants holding master’s degrees or higher from U.S. universities. However, not all H-1B applications are subject to this cap, resulting in the total number of approved petitions often exceeding the cap.
- For example, in the fiscal year 2023, the United States Citizenship and Immigration Services (USCIS), under the Department of Homeland Security, approved 118,948 petitions for initial employment and 267,370 petitions for continuing employment.
- Certain applicants, such as those employed by higher education institutions, nonprofit organizations affiliated with such institutions, nonprofit research organizations, or government research entities, are exempt from the annual cap
5. Challenges
- Indian nationals are the primary beneficiaries of the H-1B visa program, consistently accounting for over 70% of all approved H-1B petitions annually since 2015, according to U.S. government data. Chinese nationals rank a distant second, making up 12-13% of approvals since 2018.
- This significant representation of Indian professionals has drawn the attention of nativist MAGA Republicans, who have extended their anti-immigration rhetoric from low-skilled labor migration by Mexicans and Central Americans to include Indian workers in the tech industry.
- Their argument revolves around the claim that the H-1B program, originally designed to attract exceptional global talent, is being exploited by tech companies to fill lower- to mid-level positions at wages much lower than those expected by American workers.
- While proponents like Elon Musk argue that H-1B visas address a "permanent shortage of excellent engineering talent," critics counter that the issue is not a lack of skilled American workers but that they are deemed "too expensive to hire" by tech firms.
- This critique is supported by data. An analysis of 60,000 H-1B approvals from USCIS in the 2023 fiscal year, conducted by Bloomberg, revealed that nearly 70% of Indian H-1B recipients earned annual salaries below $100,000.
- For comparison, the median salary for IT professionals in the U.S. was $104,420 in May 2023, as reported by the U.S. Bureau of Labor Statistics. Approximately 25% of H-1B approvals for Indian professionals fell within the $100,000 to $150,000 salary range, while only 5% exceeded $150,000
6. Way Forward
H-1B visas play a vital role in addressing the skills gap in the United States, with wages largely determined by market forces. Globally, Chinese and Indian professionals lead in STEM fields. According to data from the Center for Security and Emerging Technology (CSET) in 2020, China produced 3.57 million STEM graduates, and India followed with 2.55 million, far surpassing the United States, which had 820,000 STEM graduates
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For Prelims: H-1B visa, United States, U.S. Citizenship and Immigration Services, STEM fields, lottery system,
For Mains:
1. What are the implications of the new H-1B visa regime for US-India relations?
Discuss the measures can the Indian government take to support Indian IT workers affected by the new H-1B visa regime. (250 Words)
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Previous Year Questions
1. Consider the following statements: (UPSC 2019)
1. Coal sector was nationalized by the Government of India under Indira Gandhi.
2. Now, coal blocks are allocated on lottery basis.
3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production.
Which of the statements given above is/are correct?
A. 1 only B. 2 and 3 only C. 3 only D. 1, 2 and 3
Answer: A
2. Which of the following statements about town planning in British India in early 19th century is/are correct? (UPSC CAPF 2018)
1. The funds for town improvement were also raised through public lotteries.
2. The threats of epidemics gave an impetus to town planning in the early decades of 19th century.
Select the correct answer using the code given below
A.1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
Answer: C
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Source: Indianexpress
