US may lose competitive edge by H1B Clampdown

8 August 2017

Contrary to the statements of US President, Donald Trump who is taking hard steps to minimize the H1B visas and to get employment to US Citizens, a American Think-Tank is of the opinion that clamp down on H1B visas will make it difficult for the US IT Sector to attract open talent from countries especially India. This might lead to America losing the competitive edge.


Center for Global Development (CGD) in its report published that it is beneficial for both the countries, India and US to encourage the H1B Program.


The report titled 'The IT Boom and Other Unintended Consequences of Chasing the American Dream' takes an in-depth look at how the H-1B visa programme affects both the US and Indian economies.


Gaurav Khanna, fellow at CGD and co-author of the research paper said that IT companies might move to countries like Canada in the event of large scale clampdown on H-1B visas.


The research, which examines the relationship between migration and the outsourcing of IT production to India since the early 2000s, found that US workers are on average, better off by about $ 431 million or $ 1,345 per additional migrant in 2010 because of the H-1B programme.


The study incorporates crucial mechanisms like innovation by businesses, trade with other countries, and the choices made by students and workers to become computer scientists.


While there are some negative impacts for a subset of the US workers, the overall gains outweigh the losses as the combined incomes of the US and India both rise under the H-1B programme by about $ 17.3 billion or 0.36 per cent. And total IT output from both nations rose steadily under the H-1B regime by about 0.45 per cent in 2010, the CGD research said. 

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