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Introduction

The H-1B visa, a key pathway for skilled foreign workers to the US, is dominated by Indians who form over 70% of beneficiaries. The recent US decision to impose a $100,000 fee on new visas has sparked uncertainty, reflecting protectionist economic policies with direct implications for India’s workforce and diaspora.

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H-1B Visa as a Reflection of Shifting Global Economic Dynamics

• Protectionist Turn in US Policy: The $100,000 fee reflects growing economic nationalism, where advanced economies seek to protect domestic jobs amidst slowing growth.
  Eg: Similar to 50% tariffs imposed by the US on its trade with India.
• Labour Market Pressures: High reliance on foreign STEM talent highlights the mismatch between US workforce supply and the demand in technology sectors.
  Eg: Foreign STEM workers doubled between 2000 and 2019, while domestic STEM employment grew only 44.5%.
• Strategic Use of Immigration as Trade Tool: Linking visa restrictions with tariffs (like the 25% Russian penalty and India trade talks) shows how labour mobility is part of broader economic bargaining.
• Shift in Global Talent Competition: Countries such as Canada, UK, and Australia are liberalising skilled migration, while the US is tightening entry indicating realignment of global talent hubs.
• Revenue-Raising Measure: By attaching large fees, the US is monetising immigration, framing it not just as labour mobility but also as fiscal consolidation.
  

Impact on the Indian Diaspora

Leveraging ‘Reverse Brain Drain’ for Atmanirbhar Bharat

• Boost to Domestic Start-ups: Returning professionals bring global exposure, networks, and expertise that can energise India’s start-up and unicorn ecosystem.
  Eg: Many founders of Indian unicorns are ex-Silicon Valley professionals.
• Strengthening R&D Ecosystem: Skilled returnees can strengthen academia-industry collaboration in AI, semiconductors, and biotech areas critical for self-reliance.
• Human Capital for Digital India & Make in India: Repatriated talent can plug skill gaps in advanced manufacturing and IT services, aligning with Atmanirbhar Bharat.
• Global Value Chain Integration: With India pitching itself as an alternative to China, high-skilled returnees can help domestic firms meet global standards in design, quality, and innovation.
• Policy Support for Returnees: Government schemes (Startup India, PLI incentives, research parks) can be tailored to absorb skilled professionals, turning forced migration into a demographic dividend.

Conclusion

The H-1B issue highlights changing global labour dynamics and challenges for the Indian diaspora. For India, it also opens a chance to harness returning talent for innovation, start-ups, and Atmanirbhar Bharat, turning disruption into opportunity.

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