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DAILY CURRENT AFFAIRS, 19 SEPTEMBER 2023

VISHWAKARMA SCHEME

1. Context

  • Recently, Prime Minister Narendra Modi launched the PM Vishwakarma scheme in New Delhi, a government initiative aimed at supporting workers engaged in traditional crafts and skills.
  • This newly unveiled scheme, with a substantial budget of Rs 13,000 crore, is fully funded by the Central government.
  • It holds significance not only for its economic implications but also as a means for reaching out to economically marginalized and socially backward communities, particularly the Other Backward Classes (OBC) groups. 

2. About the Vishwakarma Scheme

  • The Vishwakarma scheme derives its name from Vishwakarma, a prominent figure in Hindu mythology who is considered the architect of the gods.
  • He is revered as the divine carpenter and master craftsman responsible for crafting weapons for the gods and constructing their cities and chariots.
  • Vishwakarma is regarded as the patron deity of workers, artisans, and artists.

3. Eligibility for the Vishwakarma Scheme

  • The scheme primarily focuses on professionals engaged in traditional crafts and skills that have been passed down through generations, often taught by family elders.
  • These skilled workers have encountered various challenges, including the lack of professional training, access to modern tools, distance from relevant markets, and limited capital for investment.
  • The Vishwakarma scheme aims to assist families associated with 18 different sectors, which include:
  1. Carpenters
  2. Boat Makers
  3. Armourers
  4. Blacksmiths
  5. Hammer and Tool Kit Makers
  6. Locksmiths
  7. Goldsmiths
  8. Potters
  9. Sculptors and Stone breakers
  10. Cobblers (Shoesmiths/Footwear artisans)
  11. Masons (Rajmistri)
  12. Basket/Mat/Broom Makers/Coir Weavers
  13. Doll & Toy Makers (Traditional)
  14. Barbers
  15. Garland makers
  16. Washermen
  17. Tailors
  18. Fishing Net Makers

4. Benefits of the Vishwakarma Scheme

The Vishwakarma scheme offers several benefits to enhance the skills and livelihoods of workers in these traditional sectors:

  1. Registration: Vishwakarma workers will be registered for free through Common Services Centres using the biometric-based PM Vishwakarma portal.
  2. Recognition: They will receive recognition through the PM Vishwakarma certificate and ID card.
  3. Skill Upgradation: Workers will undergo skill upgradation involving basic and advanced training.
  4. Toolkit Incentive: A toolkit incentive of ₹15,000 will be provided to help workers acquire modern tools.
  5. Credit Support: Collateral-free credit support will be extended, with the first tranche offering ₹1 lakh and the second tranche ₹2 lakh at a concessional interest rate of 5%.
  6. Digital Transactions: An incentive for digital transactions will be provided.
  7. Marketing Support: Workers will receive marketing support to promote their crafts.
  • The scheme would provide a stipend of Rs 500 for skill training and Rs 1,500 for the purchase of modern tools.
  • The first year aims to cover five lakh families, with a target of reaching 30 lakh families over five years.
  • Additionally, the scheme intends to integrate Vishwakarmas into domestic and global value chains, promoting economic growth and sustainability.

5. The Way Forward

  • The PM Vishwakarma scheme stands as a significant initiative to empower traditional crafts and skills, providing much-needed support to artisans and workers in various sectors.
  • By addressing the challenges faced by these skilled individuals and offering skill enhancement, financial assistance, and marketing support, the government aims to uplift marginalized communities while preserving and promoting India's rich heritage of craftsmanship.
For Prelims: Vishwakarma, OBC, Craftsman, Hindu mythology, digital transactions, financial assistance, marketing support, 
For Mains: 
1. Evaluate the potential impact of the PM Vishwakarma scheme on the socio-economic well-being of traditional artisans and craftsmen in India. Discuss the challenges faced by these artisans and how the scheme addresses them. (250 words)
 
 
 
Previous Year Questions
 
1. Who was appointed as the head of the OBC Sub-categorisation Commission?
(Maharashtra Talathi 2019) 
A. Justice Geeta Mittal
B. Justice Manjula Chellur
C. Justice Tahilramani
D. Justice G. Rohini
 
Answer: D
 
2. The National Commission for Backward Classes (NCBC) was formed by insertion of Article ______ in the Constitution of India.  (SSC CGL 2020) 
A. 328B      B. 338A       C. 338B      D.  328A
 
Answer: C
 
3. With reference to Indian history, consider the following texts: (UPSC 2022)
1. Nettipakarana
2. Parishishtaparvan
3. Avadanashataka
4. Trishashtilakshana Mahapurana
Which of the above are Jaina texts? 
A.1, 2 and 3       B. 2 and 4 only             C. 1, 3 and 4           D. 2, 3 and 4
 
Answer: B
 
4. With reference to digital payments, consider the following statements: (UPSC 2018)
1. BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.
Which of the statements given above is/are correct?
A. 1 only             B. 2 only           C.  Both 1 and 2         D. Neither 1 nor 2
 
Answer: A
 
5. 'European Stability Mechanism', sometimes seen in the news is an (UPSC 2016)
A. Agency created by EU to deal with the impact of millions of refugees arriving from Middle East
B. Agency of EU provides financial assistance to eurozone countries
C. Agency of EU to deal with all the bilateral and multilateral agreements on trade
D. Agency of EU to deal with the conflicts arising among the member countries
 
Answer: B
 
6. "Rapid Financing Instrument" and "Rapid Credit Facility" are related to the provisions of lending by which one of the following? (UPSC 2022)
A. Asian Development Bank
B. International Monetary Fund
C. United Nations Environment Programme
D. Finance Initiative World Bank
 
Answer: B
 
Source: The Indian Express

QUESTION HOUR AND  ZERO HOUR

 
 
1. Context
 Parliament will hold a five-day special session, from September 18 to 22 (2023), amid widespread speculation over the agenda of the session. The Opposition has questioned the fact that the government has said there will be no Question Hour or Zero Hour during this session, nor would any private member Bills be allowed.
 
2. Question Hour
Question Hour is the first hour of a sitting session of the Lok Sabha (lower house of the Indian Parliament) devoted to questions that Members of Parliament (MPs) raise about any aspect of administrative activity. The concerned Minister is obliged to answer to the Parliament, either orally or in writing, depending on the type of question raised. Questions are one of the ways Parliament can hold the Executive accountable
 
2.1.. Types of Questions

There are three types of questions that can be asked during Question Hour:

a. Starred Questions: These questions require an oral answer from the concerned minister, and the MP who asked the question can seek supplementary questions for further clarification.

b. Unstarred Questions: These questions are answered in writing, and MPs do not have the opportunity to ask supplementary questions during the session. The written responses are usually provided later.

c. Short Notice Questions: These are urgent questions that can be asked with the Speaker's permission. They are generally related to recent developments or events.

2.2.. Key Features of Question hour

 

  1. Scheduled Time: Question Hour is a specific period of time allocated during each parliamentary session, usually at the beginning of the day's proceedings. In the Indian Parliament, it typically takes place from 11:00 AM to 12:00 PM.

  2. Questions from Members: During Question Hour, Members of Parliament (MPs) are given the opportunity to ask questions to government ministers. These questions can be related to government policies, actions, or any other matter of public interest.

  3. Supplementary Questions: After the minister provides an initial response, MPs who asked the starred questions can ask supplementary questions to seek more detailed information or clarification
  4. Accountability and Transparency: Question Hour serves as a crucial mechanism for holding the government accountable for its actions and decisions. It allows MPs to raise issues, seek information, and scrutinize the government's performance
  5. Role of Speaker: The Speaker of the House presides over Question Hour and ensures that it proceeds smoothly. The Speaker may also rule on the admissibility of questions and the conduct of MPs
  6. Importance: Question Hour is an integral part of the parliamentary process as it promotes transparency, encourages discussion on important issues, and helps MPs fulfill their oversight role
  7. Follow-up Actions: The responses and discussions during Question Hour can lead to various follow-up actions, including debates, discussions, and legislative proposals
3. Zero Hour
Zero Hour is a period of time in the proceedings of the Indian Parliament during which Members of Parliament (MPs) can raise matters of urgent public importance. It is held immediately after Question Hour, at 12 noon
During Zero Hour, MPs can raise any issue they want, without giving prior notice. However, the Speaker of the Lok Sabha or the Chairman of the Rajya Sabha has the discretion to decide whether or not to allow an MP to raise an issue during Zero Hour
Zero Hour is an important part of the parliamentary process because it allows MPs to raise issues that are important to their constituents and to hold the government accountable. It is also a way for the government to respond to public concerns
3.1. Key features of Zero hour

Here are the key features and aspects of Zero Hour in the Indian Parliament:

  1. Timing: Zero Hour does not have a fixed time slot like Question Hour. It takes place immediately after the conclusion of Question Hour, typically around 12:00 PM or shortly thereafter.

  2. Duration: Zero Hour does not have a fixed duration, and it can extend for as long as deemed necessary by the Speaker of the House. The duration can vary from one session to another.

  3. No Prior Notice: Unlike Question Hour, where questions are submitted in advance, Zero Hour allows MPs to raise issues without prior notice. MPs can give notice to the Speaker on the same day they wish to raise an issue during Zero Hour.

  4. Scope: During Zero Hour, MPs can raise a wide range of issues, including matters of urgent public importance, recent events, policy concerns, and other subjects they consider significant. These issues may not be related to specific questions asked earlier in Question Hour.

  5. Format: The format of raising issues during Zero Hour is more flexible than Question Hour. MPs usually make brief statements, raise points, or seek the attention of the House on the matters they want to discuss.

  6. Discussion and Response: While there is no structured debate during Zero Hour, other members may join in to express their views or seek clarifications. Ministers may also respond briefly to the issues raised, although detailed responses or discussions are typically reserved for scheduled debates and discussions.

  7. Speaker's Discretion: The Speaker of the House exercises discretion in allowing members to raise issues during Zero Hour and in managing the proceedings. The Speaker decides the order in which MPs are allowed to speak and can limit the time allocated to each issue.

  8. Importance: Zero Hour is an important feature of the Indian parliamentary system as it provides an avenue for MPs to draw attention to pressing matters and initiate discussions on topics of immediate concern. It allows for a degree of spontaneity in addressing current issues.

Source: indianexpress

G-77

 
1. Context
Brazilian President Luiz Inácio Lula da Silva met with his Cuban counterpart Saturday in Havana, signalling a revitalization of ties between the two countries in the first trip by a Brazilian president to the Caribbean nation in nine years
Group of 77 - Wikipedia
 
2. G-77
  • The Group of 77 (G-77) is the largest intergovernmental organization of developing countries in the United Nations.
  • It was established in 1964 by 77 developing countries, but has since grown to 135 members. The G-77 provides a platform for developing countries to promote their collective economic interests and enhance their joint negotiating capacity on all major international economic issues
  • The group's primary aim is to promote economic cooperation among its member states and to address common economic and developmental challenges facing developing countries.
  • Today, it is the largest and most diverse consensus group in the multilateral sphere, with 134 member states representing two-thirds of the United Nations membership, 80% of the world’s population and about 50% of the world economy. China, which joined in 1992, participates and collaborates externally.
  • The Havana Summit concluded its activities on Saturday and was classified as a great success based on the participation, the points reached for the benefit of the global south and the broad consensus reflected in the final declaration
3. Key Objectives of G-77

Key objectives and functions of the G-77 include:

  1. Promoting economic development: The G-77 seeks to enhance the economic development of its member countries by advocating for fairer trade terms, increased financial assistance, and the transfer of technology and expertise from developed to developing nations.

  2. Strengthening the voice of developing countries: The group provides a platform for developing countries to collectively voice their concerns and priorities in international forums like the United Nations. This allows them to have a greater say in global decision-making processes.

  3. South-South cooperation: The G-77 encourages cooperation and collaboration among developing countries, often referred to as South-South cooperation. This can involve sharing knowledge, technology, and resources to address common challenges and promote sustainable development.

  4. Negotiating at the United Nations: The G-77 often forms alliances with other regional and thematic groups to negotiate on issues such as trade, climate change, development financing, and more. These negotiations are conducted within the framework of the UN and its various agencies.

  5. Advocating for reform: The G-77 has been an advocate for reforms in international financial institutions like the International Monetary Fund (IMF) and the World Bank to make them more responsive to the needs and concerns of developing countries

4.India and G-77
India is a founding member of the G-77 and has played a leading role in the group since its inception. India has chaired the G-77 on several occasions, most recently in 1993-94
India has used the G-77 platform to advocate for the interests of developing countries on a wide range of issues, including trade, finance, development, and climate change. India has also been a strong supporter of South-South cooperation.

Here are some key points regarding India's role within the G-77:

  1. Founding Member: India was one of the founding members of the G-77 when the group was established on June 15, 1964. At that time, 77 developing countries came together to form the coalition to promote economic cooperation and address common development challenges.

  2. Active Participation: India has consistently participated in G-77 meetings, summits, and negotiations at the United Nations. It has played an active role in shaping the group's agenda and positions on various issues related to economic development, trade, finance, and global governance.

  3. Advocacy for Developing Countries: India, along with other G-77 member states, advocates for the interests of developing countries in international forums. This includes issues such as trade, development financing, climate change, and reforming global institutions like the United Nations, the International Monetary Fund (IMF), and the World Bank.

  4. South-South Cooperation: India has been a proponent of South-South cooperation, which involves collaboration and knowledge sharing among developing countries. Within the G-77, India has engaged in initiatives to foster cooperation among nations of the Global South.

  5. Diverse Interests: While the G-77 represents a coalition of developing countries, it's important to note that member states have diverse interests and priorities. India's specific positions within the group can vary depending on the issue at hand.

  6. Development Goals: India aligns its participation in the G-77 with its broader development goals, including poverty reduction, sustainable development, and economic growth

5. Way forward
It's important to note that while the G-77 is a significant group within the UN, its membership and objectives have evolved over time, and the number of member countries may change. Additionally, the group's interests and priorities can vary among its member states, so it does not represent a monolithic bloc with uniform positions on all issues
 
 

 

For Prelims: G 7, BRICS, G 20
For Mains: 1.Explain the genesis and objectives of the G-77 group at the United Nations. How has India's participation in this group influenced its foreign policy and international standing?

2.Discuss the role of the G-77 in promoting South-South cooperation among developing countries. Provide examples of successful initiatives or collaborations within this framework.

 
Previous year Questions

1.With reference to a grouping of countries known as BRICS, consider the following statements: (UPSC CSE 2014)

  1. The First Summit of BRICS was held in Rio de Janeiro in 2009.
  2. South Africa was the last to join the BRICS grouping.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: (b)

2.Which Country is not a Member of G-7? (RRB Mains 2019)
A. Russia
B. Germany
C. Italy
D. Britain
E. USA
Answer (A)
 
Source: indianexpress

GLOBAL BIOFUELS ALLIANCE

 

1. Context

On September 10, on the sidelines of the annual G-20 summit in New Delhi, an India-led grouping came together to give impetus to producing and using biofuels, an alternative to fossil fuels like petroleum and diesel. The grouping called the Global Biofuels Alliance (GBA), would attempt to bring countries together to co-develop, accelerate technological advances in production processes, and advocate for biofuels, particularly in the transport sector. The three founding members, India, the U.S., and Brazil, were joined by Argentina, Canada, Italy, and South Africa, who are also G-20 member countries.

2. What are Biofuels?

Biofuels are a category of renewable fuels produced from organic materials, often derived from living organisms or their byproducts. They are considered a more environmentally friendly alternative to traditional fossil fuels because they can reduce greenhouse gas emissions and dependence on non-renewable energy sources. There are several types of biofuels, including:

  • Ethanol: Ethanol is a biofuel made primarily from crops like corn, sugarcane, or wheat. It can also be produced from cellulosic materials such as agricultural residues and woody biomass. Ethanol is commonly blended with gasoline to create ethanol-gasoline blends, such as E10 (10% ethanol) or E85 (85% ethanol), which are used as automotive fuels.
  • Biodiesel: Biodiesel is made from vegetable oils (e.g., soybean, canola, or palm oil) or animal fats. It can be used as a direct replacement for diesel fuel or blended with traditional diesel fuel. Biodiesel is known for its lower greenhouse gas emissions and reduced air pollutants compared to conventional diesel.
  • Biogas: Biogas is produced through the anaerobic digestion of organic matter, such as sewage, agricultural waste, and food scraps. It primarily consists of methane, which can be used for electricity generation, heating, and as a vehicle fuel.
  • Hydrogen from Biomass: Biomass can also be used to produce hydrogen gas through processes like gasification or fermentation. This hydrogen can be used as a clean fuel for various applications.
  • Biojet Fuel: Biojet fuel is specifically designed for use in aviation. It is produced from renewable feedstocks and meets the stringent specifications required for jet engines. It has the potential to reduce the carbon footprint of air travel.
  • Algal Biofuels: Algae can be grown to produce oils that can be converted into biodiesel. Algal biofuels have the advantage of potentially higher yields and reduced competition for arable land compared to crop-based biofuels.
  • Advanced and Cellulosic Biofuels: These biofuels are made from non-food feedstocks, such as agricultural residues, woody biomass, and non-food crops like switchgrass. They are considered more sustainable because they don't compete with food production and can be produced using waste materials.

Biofuels are seen as a way to mitigate the environmental impacts of fossil fuels, reduce greenhouse gas emissions, and promote energy security. However, their production and use can also raise concerns, such as land use competition with food crops, deforestation, and potential impacts on biodiversity. Sustainable practices and responsible land use are important considerations in the production of biofuels to ensure their long-term benefits.

3. Biofuels an alternative to fossil fuels

  • Biofuels vs. Sustainable Biofuels: Experts differentiate between biofuels and sustainable biofuels. Biofuels come from dedicated crops like sugarcane, corn, and soybean, while sustainable biofuels are derived from sources like agricultural waste, used cooking oil, and animal residues. The former is often called 1G ethanol (first-generation), and the latter is referred to as 2G (second-generation).

  • Climate Change Concerns: With the acceleration of climate change, there are growing concerns about the impact of biofuel production on food security and the environment. The cultivation of crops for biofuels can lead to increased deforestation, loss of biodiversity, and competition for arable land.

  • Land Use Pressure: More than half of the world's vegetated land is used for agriculture, putting tremendous pressure on available land resources. Agriculture is also a significant source of carbon emissions.

  • GBA Focus on 2G Ethanol: The Global Biofuel Alliance (GBA) has made it clear that its primary focus is on the development of 2G ethanol. This second-generation biofuel is considered more sustainable because it utilizes sources like agricultural waste, reducing the need for additional land and potentially mitigating negative environmental impacts associated with biofuel production.

4. Renewed Focus on Biofuels
  • Global crude oil supply disruptions due to events like the Ukraine war have prompted countries to seek alternatives to reduce import dependence on petrol and diesel.
  • India, for example, imports 87% of its crude oil, leading to a significant expenditure in foreign reserves.
  • Efforts are being made to decarbonize the transport sector, which accounts for a significant portion of global carbon emissions.
  • Electric vehicle (EV) policies and legacy automakers entering the EV sector are part of these efforts.
  • Some modes of transport like aviation, shipping, and long-haul trucking face challenges in reducing carbon emissions compared to self-driven cars or motorbikes.
  • Experts suggest that 2G ethanol could be a valuable substitute in these harder-to-decarbonize sectors.

5. Role of Biofuels in the Energy Transition

  • Most biofuels are blended with petrol or diesel, with countries like India blending about 10% of biofuels and planning to increase this percentage.
  • Debates exist regarding the role of biofuels in the ongoing energy transition.
  • Some experts emphasize accelerating EV adoption and developing alternatives like green hydrogen as the primary focus.
  • Others argue that 2G ethanol can help soften the disruption by reducing greenhouse gas (GHG) emissions while extending the life of internal combustion engines.
  • This extension provides time for automakers to develop robust alternatives and offers economic benefits such as increased farmer incomes and job creation.

6. Global Biofuel Alliance

  • The Global Biofuel Alliance (GBA) is an initiative by India as the G20 Chair. The Alliance intends to expedite the global uptake of biofuels through facilitating technology advancements, intensifying the utilization of sustainable biofuels, and shaping robust standard setting and certification through the participation of a wide spectrum of stakeholders.
  • The alliance will also act as a central repository of knowledge and an expert hub. GBA aims to serve as a catalytic platform, fostering global collaboration for the advancement and widespread adoption of biofuels.
  • The Global Biofuel Alliance (GBA) has three founding members.
  • These three countries collectively produce 85% of global biofuels and consume approximately 81% of them.

U.S. Renewable Fuel Standard Amendment:

  • The U.S. has announced amendments to its Renewable Fuel Standard to significantly increase biofuel production.
  • The goal is to replace about 140,000 barrels per day of crude oil imports by 2025.

7. India's Biofuel Initiatives:

  • India announced plans to establish 12 new refineries in 2018.
  • The aim is to achieve a 20% ethanol blending rate in fuels by 2025.
  • India's commitment to becoming net-zero by 2070 adds significance to these efforts.

Global Biofuel Demand Predictions:

  • The International Energy Agency (IEA) predicts that about two-thirds of global biofuel demand will originate from three emerging economies: India, Brazil, and Indonesia.
  • These countries have domestic feedstocks, production capacity, low production costs, and supportive policies to boost demand.

Decarbonization Impact:

  • The extent to which these developments will accelerate the decarbonization of the energy sector remains to be seen.
  • Increased biofuel production and adoption have the potential to reduce carbon emissions, particularly in transportation.
  • The success of these initiatives will depend on various factors, including policy implementation and market dynamics.

8. Conclusion

The GBA's founding members, along with countries like the U.S. and India, are making significant efforts to boost biofuel production and use. These initiatives have the potential to contribute to decarbonizing the energy sector, especially in emerging economies, but their success will depend on effective implementation and market factors.

For Prelims: Global Biofuel Alliance (GBA), G-20 summit, E10 (10% ethanol) or E85 (85% ethanol), Electric vehicle (EV), and International Energy Agency (IEA).

For Mains: 1. Discuss the role of biofuels in the global transition to sustainable energy sources, considering their environmental impact, economic implications, and potential for reducing greenhouse gas emissions. (250 words).

 

Previous year Question

1. According to India's National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels? (UPSC 2020)

1. Cassava

2. Damaged wheat grains

3. Groundnut seeds

4. Horse gram

5. Rotten potatoes

6. Sugar beet

Select the correct answer using the code given below:

A. 1, 2, 5 and 6 only

B. 1, 3, 4 and 6 only

C. 2, 3, 4 and 5 only

D. 1, 2, 3, 4, 5 and 6

Answer: A

2. It is possible to produce algae-based biofuels, but what is/are the likely limitation(s) of developing countries in promoting this industry? (UPSC 2017)

1. Production of algae-based biofuels is possible in seas only and not on continents.

2. Setting up and engineering the algae-based biofuels production requires a high level of expertise/technology until the construction is completed.

3. Economically viable production necessitates the setting up of large-scale facilities which may raise ecological and social concerns.

Select the correct answer using the code given below:

A. 1 and 2 only

B. 2 and 3 only

C. 3 only

D. 1, 2 and 3

Answer: B

3. With reference to the Neem tree, consider the following statements: (UPSC 2014)

1. Neem oil can be used as a pesticide to control the proliferation of some species of insects and mites.

2. Neem seeds are used in the manufacture of biofuels and hospital detergents.

3. Neem oil has applications in the pharmaceutical industry.

Which of the statements given above is/are correct?

A. 1 and 2 only

B. 3 only

C. 1 and 3 only

D. 1, 2 and 3

Answer: C

Source: The Hindu

H-1B VISA

1. Context

The United States has recently made significant changes to its H-1B visa program, prioritizing higher wages and skills when selecting candidates instead of the previous lottery system. 

2. The Genesis of H-1B Work Visas

  • In 1952, as the United States expanded its presence in science, technology, engineering, and mathematics (STEM) fields, it sought skilled workers to drive innovation at reasonable costs.
  • This led to the introduction of the H-1 work visa system, which includes H-1B, H-2B, L1, O1, and E1 visas, tailored to specific qualifications and job categories.
  • Among these, the H-1B visa emerged as the most popular due to its relatively better wage prospects.
  • H-1B visas are for temporary workers in speciality occupations, which are defined as those requiring theoretical and technical expertise in a specific field, such as engineering, mathematics, science, or medicine.
  • H-1B workers must have a bachelor's degree or equivalent in their field, and their employer must obtain a Labor Condition Application (LCA) from the US Department of Labor (DOL).

3. Globalization of STEM Graduates

  • With the proliferation of the Internet and affordable computers in developing nations like India, China, and Pakistan, a surge of STEM graduates emerged.
  • These graduates, facing a scarcity of job opportunities in their home countries, were eager to work in the United States at competitive wages.
  • This symbiotic arrangement benefited both employers and employees, making H-1B work visas highly sought-after.
  • The H-1B visa system has undergone numerous revisions to accommodate or restrict the entry of skilled workers, depending on the U.S. economic climate.
  • However, it has also faced criticism for potentially displacing domestic workers with lower-cost foreign labour.

4. The Old Lottery System

  • Previously, the U.S. administration annually issued 85,000 H-1B work permits, with 65,000 allocated for individuals in speciality occupations and the remainder for foreign workers with advanced U.S. degrees.
  • Employers seeking H-1B hires submitted registration forms with employee details, including job nature, offered wages, and education levels.
  • Due to an overwhelming number of applications, a random lottery determined the selection for the 65,000 speciality occupation visas, followed by the 20,000 advanced degree exemption visas. This lottery system disregarded wage levels, skills, or employer needs.

5. The New Wage-Based H-1B Visa Regime

In the latest development, the H-1B visa selection process has shifted toward a wage-based model that prioritizes certain criteria.

  1. Wage Prioritization: The new regime gives priority to applications from employers offering a "proffered wage" that equals or exceeds the prevailing wage level in the area of employment. The proffered wage is the salary the employer intends to pay the visa beneficiary. This rule applies to both the 65,000 regular visas and the 20,000 advanced degree exemption visas.

  2. Skill Assessment: Additionally, the system considers the skill set of the prospective worker and evaluates whether similar skills are available among U.S. workers at a comparable cost.

The U.S. Citizenship and Immigration Services (USCIS) argues that salaries provide a practical indicator of an applicant's skill level, as employers tend to offer higher wages to the most qualified candidates. This approach is intended to safeguard domestic job opportunities and ensure that U.S. workers are not displaced by foreign labour.

6. H-2B, L1, O1, and E1 visas

 H-2B, L1, O1, and E1 visas are all nonimmigrant visas that allow foreign nationals to work in the United States. Each visa type has its own specific eligibility requirements and purpose.

  1. H-2B visas are for temporary nonagricultural workers who perform jobs that are seasonal or temporary and for which there is a shortage of US workers. H-2B workers are typically employed in industries such as landscaping, hospitality, and construction.
  2. L1 visas are for intracompany transferees, which are employees of a foreign company who are being transferred to a related US company. L1 workers must have a managerial or executive position in a foreign company and must have worked for the company for at least one year in the past three years.
  3. O1 visas are for individuals with extraordinary ability in the arts, sciences, education, business, or athletics. O1 visa holders must have demonstrated extraordinary achievement in their field and must be coming to the US to work in their field of expertise.
  4. E1 visas are for treaty traders, which are nationals of a country with which the US has a treaty of commerce and navigation. E1 visa holders must be coming to the US to trade in goods or services between the US and their home country.

7. The Way Forward

  • The shift from the lottery-based selection system to a wage-based regime marks a significant change in the H-1B work visa program.
  • This adjustment aims to align the visa allocation process with market-driven factors such as wages and skill sets, potentially mitigating concerns about undercutting domestic employment opportunities.
 
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)
 
 
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
 
Source: The Indian Express

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