20

Aug

Trump’s H-1B Visa Squeeze and Our Job Dilemma

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A person wearing glasses and a suit AI-generated content may be incorrect.Prime Minister Narendra Modi’s Independence Day announcement of a ₹1 lakh crore job-generation plan through EPF incentivisation was a welcome step. But it does little to counter the Donald Trump–led assault on the H-1B visa system, which remains a lifeline for thousands of Indian professionals. What India needs is not just temporary schemes but an out-of-the-box solution to generate quality jobs and retain talent at home.

A Shifting U.S. Landscape

The H-1B debate is at its sharpest for low-paid, entry-level jobs. While highly skilled applicants at higher wage levels (Level 3 and 4) may still manage, U.S. corporate preference for cheaper Indian hires has triggered political backlash. Trump’s wage-based reforms to the visa lottery effectively block freshers and entry-level international students from securing visas. For startups that rely on cost-efficient talent, this change is devastating.

Though denial rates for H-1B petitions have eased in recent years—dropping to about 2.5% in FY 2024—the policy pendulum could swing back under Trump. More restrictive policies will likely re-escalate rejections, deepening anxiety for Indian professionals in the U.S.

The IIT Exodus

India spends ₹10–15 lakh per student on IIT BTech training, with a 2024–25 budget of ₹9,660 crore. Yet, according to LinkedIn, Threads, and NBER data, 30–36% of IIT graduates migrate abroad each year, while 70% of those who remain work for foreign MNCs like Google, Amazon, or Microsoft.

Why? Better pay, humane working hours, and job security. Instead of incentivising them to stay, industry leaders like Infosys’s Narayan Murthy (advocating 70-hour weeks) or L&T’s S.N. Subrahmanyan (suggesting 90-hour weeks without a weekly off) have pushed policies that risk driving talent away. India must restore global labour standards—48-hour weeks and 8-hour days—instead of enforcing 12-hour shifts under amended labour laws. Draconian measures will only accelerate brain drain.

 

Prime Minister Modi’s ₹1 lakh crore job-generation plan is a step forward, but it fails to address the larger crisis posed by U.S. restrictions on H-1B visas—a lifeline for Indian professionals. Trump’s wage-based reforms threaten freshers and entry-level workers, raising fears of rejections and deportations. Meanwhile, India faces a severe brain drain, with 30–36% of IIT graduates moving abroad annually, lured by better pay and humane working conditions. Domestic policies pushing 70–90-hour workweeks risk worsening the exodus.
Monday Moorings
By Shivaji Sarkar
 In the U.S., legal challenges against Indian IT firms and rising resentment portray Indian workers as “cheap labour,” despite median salaries of $132,000 and high visa costs. With 72% of H-1B visas going to Indians, dependence on foreign job markets is unsustainable. India must strengthen labour standards, ensure fair wages, and foster entrepreneurship to retain talent. The H-1B squeeze is a wake-up call for India to build a self-reliant economy that values and rewards its brightest minds.

 

Legal Battles and Bias

The U.S. Equal Employment Opportunity Commission (EEOC) has warned against hiring practices that disproportionately favour migrant workers. TCS faced complaints of sidelining Americans in favour of lower-paid Indian H-1B workers, while Cognizant lost a jury ruling for discriminatory hiring. Former employees allege that Indians were given first preference for U.S. jobs, leaving others on the “bench.” Such controversies have fuelled public anger against Indian workers.

This isn’t just an image problem. It risks making Indian techies scapegoats for broader anxieties over job loss and wage stagnation in the U.S.

Anxiety and Uncertainty

H-1B visas, granted for three years, are fraught with insecurity. A recent survey found that one in six NRIs on H-1B visas fear deportation due to renewal uncertainty and shifting U.S. policies. Companies like Amazon and Google have even advised employees to avoid international travel amid re-entry concerns.

The green card backlog—especially severe for Indians—adds another layer of stress. The Washington Post reports that the long wait has begun to impact morale and productivity.

The “Cheap Labour” Myth

Despite stereotypes, Indian H-1B professionals are not always “cheap labour.” Their median salary hovers around $132,000 (₹1.01 crore), often exceeding their U.S.-born counterparts in fields like engineering. Visa sponsorship isn’t cheap either: costs can reach $34,900, and even $50,000 if permanent residency is pursued.

This exposes the contradiction: while U.S. firms benefit from highly skilled Indian talent, the political narrative continues to brand them as undercutting Americans.

A Domestic Challenge

Indian nationals dominate H-1B visas—72% compared to 12% for Chinese applicants—largely in computer science, AI, machine learning, and cybersecurity. Yet, the U.S. isn’t the only country rethinking its visa regime. The UK, too, has tightened entry until a free trade deal with India is finalised. India cannot afford to depend indefinitely on foreign job markets.

The solution lies in creating world-class opportunities at home. That means:

•      Revitalising industry through investment and innovation.

•      Fair wages and humane working conditions to compete with global standards.

•      Strengthening labour laws instead of diluting them for corporate profit.

•      Incentivising entrepreneurship and startups so that top graduates see India as a land of opportunity, not merely a launchpad for emigration.

The Road Ahead

India must see the H-1B squeeze not merely as a diplomatic or trade issue but as a wake-up call. If its brightest minds are to be retained, the domestic job market must be more attractive—financially, socially, and professionally.

Equally, the U.S. must balance protecting its labour force with recognising the contribution of Indian professionals, who fuel innovation and economic growth. Discrimination—whether in favour or against—undermines fairness and global competitiveness.

Ultimately, the way forward for India lies in self-reliance—not through slogans, but by building an economy that values talent, respects labour, and rewards merit. Once Indian professionals are treated better at home, they will not just stay; they will be sought after worldwide.( A senior journalist, media activist , Prof Shivaji Sarkar specialises in financial reporting)

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