US H-1B Visa Hike: A Self-Inflicted Wound on its STEM Economy?
UPSC Relevance
Prelims: International Relations (Bilateral relations - India-US); Indian Economy (Indian Diaspora, Remittances, Service Sector Exports); Science & Technology (STEM).
Mains:
General Studies Paper 2 (International Relations): Effect of policies and politics of developed and developing countries on India’s interests; The role of Indian diaspora.
General Studies Paper 3 (Economy/S&T): Indian Economy and issues relating to employment; Effects of liberalization on the economy.
Key Highlights from the News
This article discusses concerns that the new H-1B visa fee increase by the US will not only negatively impact Indians but also, in the long run, harm the US economy itself (shooting itself in the foot).
Main reasons behind this argument:
The IT sector is one of the fastest-growing sectors in the American economy. This sector heavily relies on skilled foreign-born workers.
While there will be high demand for STEM (Science, Technology, Engineering, and Mathematics) jobs in the future, there is a shortage of home-grown STEM talent in the US to meet this demand.
45% of STEM postgraduates in the US are international students. The new H-1B policy primarily targets them.
This protectionist policy of the US will encourage talented professionals worldwide to move to other countries like China, UK, Germany, and Canada.
This will adversely affect America's global dominance in innovation and technology.
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