H-1B Visa Ban and India ? | UPSC

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How will the U.S H-1B visa ban Impact India UPSC

H-1B Visa Ban and India ? | UPSC

      HEADLINES:

How will the U.S. visa ban impact India?

      WHY IN NEWS:

Why was the White House proclamation made? Will the Trump administration’s move affect the IT services industry adversely?

SYLLABUS COVERED: GS 2 : INTERNATIONAL RELATIONS : INDIA-USA

      LEARNING: 

For PRELIMS you have to take a note on different types of immigration visa . We have mentioned the most important once .

For MAINS understand the impact globally . How will migration increase to other countries or is this an election gimmick 😉

      ISSUE: 

On June 22, the White House made a proclamation halting the processing and issuance of non-immigrant work visas of several types, with the stated aim of this sweeping policy being to stop foreign workers snagging American jobs, especially at a time of deep economic distress brought on by the COVID-19 pandemic.  

  • The order by the Donald Trump administration includes the H-1B visa for skilled workers

DIFFERENT TYPES OF AMERICAN VISA

  • H 4 VISA : Indian nationals are dependents of the H-1B who are seeking the H4 visa(immediate family members)
  •  H-2B VISA  : It is issued to seasonal workers in the landscaping and hospitality industries.
  • L-1 VISA : It is for intra-company transfers and their dependents on the L-2 visa.
  • J-1 VISA : It is for students on work-study summer programmes and related occupations.

IMPACT

IT SECTOR : U.S-India relationship will be adversely impacting Indian IT services exported to the U.S.

INCREASE EMPLOYMENT : U.S has the potential to shore up the flagging economy and open up more jobs for U.S. persons.

CAMPAIGNING STRATEGY : Whether it will fail in that goal and yet yield dividends in terms of campaign strategy for the U.S. presidential election on November 3, 2020.

WHY IS THE TRUMP ADMINISTRATION TIGHTENING THE SCREWS ON ITS IMMIGRATION POLICY?

  • INSTITUTIONAL WALL : It had earlier instituted a ban on visitors from certain Muslim-majority countries and periodically engaged in rhetoric on building a wall to stop undocumented workers from entering the U.S. from across its southern border.

UNEMPLOYMENT

  • AMERICA FIRST POLICY : The gaping hole in this policy was the fact that the number of jobs purportedly saved from immigrants for U.S. persons was relatively small compared to the number of jobs going to foreign nationals who enter the U.S. on non-immigrant visas.
  • RISING CLAIMS : Unemployment claims filed since the novel coronavirus pandemic hit the U.S. economy in March have crossed 40 million.

  COVID-19 pandemic has “significantly disrupted Americans’ livelihoods”, to the extent that the overall unemployment rate in the country nearly quadrupled between February and May 2020 to a little over 13%.

TO WHAT EXTENT IS THE MOTIVE BEHIND THE VISA BAN POLITICAL?

  • TANGIBLE BENEFITS : Despite the work visa ban, which is to protect U.S. persons from loss of livelihoods to foreign nationals, it is still unclear that tangible economic benefits of this sort can be achieved at this juncture.
  • VISA ALREADY ARE ISSUED : Latest restrictions do not apply to visa-holders who are already within the U.S., or those who are outside the country .
  • SLOW OPERATIONS : U.S. firms or others with U.S. operations will be unable to make new hires as long as the ban stands.

PANDEMIC RAISES CONCERNS ON HIRING NEW STAFF

  • How many firms are likely to do any hiring at this economically depressed time?
  • How many will do so before the end of the calendar year?
  • The answer is “negligibly few”.

It is hard to see the Trump White House’s policy as anything other than a campaign tactic.

WILL INDIAN CORPORATIONS BE HIT?

  • KNOCK-ON EFFECT : Even as restrictions on the movement of people and goods slowly lift after India passes its peak viral case numbers, thus leading to a knock-on effect from IT to other sectors.
  • IT SERVICES : India’s IT services exports to the U.S., which depend significantly on the H-1B visa, have been an important constituent element of bilateral economic trade.

U.S. imports of services from India were an estimated $29.6 billion in 2018, 4.9% more than in 2017, and 134% greater than 2008 levels– U.S. Trade Representative.

  • MAJOR SERVICES : The major services exports from India to the U.S. are in the telecommunications, computer and information services, research and development, and travel sectors.
  • TOTAL VISA RELEASED : Until now, the U.S. issued 85,000 H-1B visas annually, of which 20,000 went to graduate students and 65,000 to private sector applicants, and Indian nationals would garner approximately 70% of these.

  Now the Migration Policy Institute has been cited predicting that up to 219,000 workers would be blocked as a result of Mr. Trump’s proclamation.

      IASbhai WINDUP: 

Immigration has contributed immensely to America’s economic success, making it a global leader in tech, and also Google the company it is today.-Google CEO Sundar Pichai

     SOURCES:THE HINDU | H-1B visa ban and India ? | UPSC

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