Mint Primer: How H-1B visas got caught in the MAGA debate

Elon Musk flags 'dire' tech shortage amid US H-1B visa debate, bats for increased immigration: ‘For your team to win…’ (REUTERS)
Elon Musk flags 'dire' tech shortage amid US H-1B visa debate, bats for increased immigration: ‘For your team to win…’ (REUTERS)

Summary

  • Controversy over H-1B visas is heating up in the US. Elon Musk and politician Vivek Ramaswamy are in favour of expanding skilled immigration. This has upset many of US president-elect Donald Trump’s supporters. Mint looks at the visa issue:

What purpose does H-1B serve?

It allows companies to hire foreign workers for specialized roles in the US. America’s tech industry heavily relies on engineers and professionals from countries like India, with over 70% of H-1B visa holders being Indian, highlighting their role in the US tech economy. Another 12% of these visas go to Chinese nationals. The programme caps H-1B visas at 65,000 per year, with an additional 20,000 for individuals holding a master’s degree from US institutions. This visa addresses the shortage of top-tier talent in the US, particularly in STEM fields (Science, Technology, Engineering, and Mathematics).

Also read | Chart beat: Indian IT firms’ exposure to H-1B visas at a multi-year low

What is the current issue around H-1B?

The latest debate erupted after Sriram Krishnan, an Indian-origin venture capitalist, was appointed to lead artificial intelligence (AI) policy in Trump’s administration. Krishnan’s call to ease green card restrictions for skilled workers sparked accusations of an ‘India First’ agenda. Trump’s Make America Great Again (MAGA) supporters are urging him to prioritize American workers and tighten immigration restrictions. While Trump supporters demand a H-1B freeze, Republican Vivek Ramaswamy and billionaire Elon Musk, both immigrants, advocate attracting talent through H-1B visas.

Also read | How Indian students can get work visas after studying abroad

How have these work visas helped the US?

Skilled foreign workers fill a crucial gap in the US labour market, especially in the STEM fields. The American Immigration Council notes that H-1B workers’ economic contributions may boost job opportunities for native-born workers by expanding those businesses, keeping unemployment rates low in occupations with many H-1B holders.

Who is on which side of the debate?

Trump backed Musk. “I have many H-1Bs on my properties. I have been a believer in H-1B visas," he told the New York Post after a backlash from his supporters. Far-right commentator Laura Loomer criticized the push for skilled immigration as ‘not America First’, accusing Musk and Ramaswamy of prioritizing foreign workers. Ramaswamy argued tech firms hire foreign-born engineers not due to a lack of local talent, but because a culture that celebrates mediocrity over excellence will not produce the best engineers.

How will it impact Indians?

Prompted by high denial rates for H-1B visas, the $260 billion Indian IT services sector, including firms such TCS, Infosys, HCL, Wipro, hire more local Americans or increase work offshore, rather than send workers from India. During Trump’s first term as president, there were curbs on immigration, prompting Indian companies to look at other options. American multinational technology companies, though, are using H1Bs to get foreign workers to fill gaps in their talent pools.

Also read | Germany to increase skilled labour visas for Indians to 90,000

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