H-1B Visa Program Is Beneficial To Both India And US, Says A ReportAugust 09, 2017 05:51
A report titled ‘The IT Boom and Other Unintended Consequences of chasing American Dream’ takes an in depth look at how the H-1B Visa program effects both US and India.
Cutting down H-1B visa will be difficult for the US IT sector to attract talent from countries like India, and America may lose its competitive edge, a American think-tank has said.
H-1B visa is a non immigration visa that allows US companies to employ foreign workers in specialty occupations that require theoretical or technical expertise in specialized fields.
The center for Global Development (CGD) said that H-1B visa, the most sought after by Indian IT professionals, is beneficial to both India and US.
“It is really important to make sure that the IT sectors of both the countries attract right kind of people, because they allow for innovation and growth in both the countries”, said gaurav khanna, fellow at CGD and co-author of research paper.
Both the economies have really benefited from H-1B Program, he said.
“What our paper is really trying to stress, is that on average the US is better off because of the H-1B visa, so clamping down on the H-1B visa will make US lose its competitive edge in IT production”, said gaurav khanna.
He also warned that, IT companies may move to countries like Canada in the event of large scale clamp down on H-1B visas.
This research examines the relationship between migration and the outsourcing of IT production to India in early 2000s, found that US workers are better on by about $1,345 additional migrant in 2010 because of H-1B Program.
The study found that 1% decrease in U.S IT products and an 7.4% fall in Indian IT products.
The average worker in each country is better off because of immigration, and us native workers had made big gains because of H-1B visa program.
According to khanna, the increase in IT sector productivity, because of the additional knowledge and skilled workers spurred by the H-1B visa program, allowed India to eventually surpass the US in software exports. Overtime, some IT production begins to be outsourced from the US to India.