Trump’s provocative H-1B curbs may backfire

THE Trump administration’s decision to impose a steep one-time fee of $100,000 for new H-1B visa applications is clearly aimed at curbing the influx of skilled foreigners, especially those from India. The presidential proclamation, titled ‘Restriction on Entry of Certain Non-Immigrant Workers’, apparently seeks to address systemic abuse of the much-coveted H-1B visa. The US President is playing to the MAGA gallery, but his desperate attempt to put American workers first may backfire. The paucity of outstanding local talent in the US in STEM (science, technology, engineering and mathematics) careers cannot be brushed aside.

Technically qualified personnel from India have contributed immeasurably to the American IT industry over the decades. The mobility of skilled talent has spurred technological innovation as well as economic growth. The hefty fee that has now been levied will prompt companies to expedite offshoring and get more work done remotely from India. There will be less local hiring in America, and project costs might go up for US clients. The number of new H-1B petitions is, of course, set to drop drastically. Trump’s plan is impractical — he wants to ensure that visa holders are “actually very highly skilled” and do not replace American workers. However, the latest measure is not likely to spur a job boom.

Can the provocative H1-B visa move prove to be a blessing in disguise for India? Former Niti Aayog CEO Amitabh Kant thinks that America will end up pushing the next wave of “labs, patents, innovation and startups” to Bengaluru, Hyderabad, Pune and Gurugram. However, it is too much to expect that the majority of India’s best brains will prefer to work in their own country rather than look for alternative avenues in the West. Much will depend on the efforts of the Indian government and the private sector to nurture and retain top-class professionals.