Union Minister of Commerce and Industry, Piyush Goyal, announced that the H1B visa issue has been resolved and is no longer a topic of international concern. Speaking at Vanijya Bhavan in New Delhi, Goyal stated that this matter would no longer dominate discussions in international talks, signaling a significant shift in the focus of India’s diplomatic and economic relations. The minister emphasized that India would now concentrate on other key areas of economic and strategic partnerships instead of the long-debated H1B visa issue.
Minister Goyal’s declaration came after his recent two-day visit to the United States, where he held meetings in New York with CEOs of leading companies. During these discussions, the focus was on reforms introduced by the Modi government aimed at attracting foreign investments in various sectors, particularly pharmaceuticals and diamonds. Goyal highlighted these reforms as a major factor in drawing increased interest from global corporations, particularly from the U.S. This visit marked a continued effort by India to strengthen its economic ties with the U.S., while the H1B visa issue, which had been a prominent topic for many years, was notably absent from the agenda.
The H1B visa program has long been a critical avenue for U.S. companies to hire foreign professionals, particularly in specialized fields requiring advanced education or knowledge. The visa allows employers to hire workers for positions that require theoretical and practical expertise in specialized areas. To qualify for the H1B visa, workers typically need at least a bachelor’s degree or equivalent qualifications in the relevant field.
According to a report published by Intead and the job search platform F1 Hire, titled “Connecting Dots: How International Students Are Finding US Jobs,” certain states in the U.S. have the highest concentration of H1B visa applicants per employer sponsor. The report found that Washington, North Carolina, Texas, and Michigan lead in the number of H1B applications, with companies in these states heavily relying on the program to source foreign talent. The report also shed light on the growing diversity of foreign workers in the U.S. While Indian nationals continue to dominate the H1B visa landscape, representing 28% of the applicants, the study also highlighted a rise in applicants from countries like Brazil and the Philippines, particularly those seeking permanent labor certification (PERM).
The PERM process, overseen by the U.S. Department of Labor, is a crucial mechanism through which employers can sponsor foreign workers for permanent positions in the U.S. Notably, nine out of the top ten companies sponsoring PERM applications in 2023 were in the technology sector. This underscores the critical role of foreign talent in driving innovation and growth in the tech industry. PERM certification has become an increasingly popular route for foreign workers, as it provides a pathway to long-term employment and residency in the U.S.
However, the H1B visa program has also been the subject of scrutiny and legal challenges in recent years. A U.S. district court recently ruled against Cognizant Technology Solutions, one of the largest users of the H1B program, in a discrimination lawsuit. The court found that Cognizant had engaged in discriminatory practices against non-Indian employees, awarding punitive damages as a result. The lawsuit also accused the company of misusing the H1B visa process to favor Indian workers over other nationalities. The ruling highlights ongoing concerns about the equitable use of the visa program, particularly in industries like information technology, where a large proportion of H1B visas are granted to Indian nationals.
In response to the growing demand for skilled labor, U.S. lawmakers have introduced new legislative measures to retain international talent, particularly in the fields of science, technology, engineering, and mathematics (STEM). In July 2023, Congressman Shri Thanedar, an Indian-American representing Michigan’s 13th Congressional District, introduced the “Keep STEM Graduates in America Act.” This legislation is aimed at making it easier for international STEM students to stay in the U.S. after completing their studies. The bill seeks to streamline the visa application process for STEM graduates, encouraging them to contribute to the U.S. economy by filling critical jobs in the science and tech sectors.
The Keep STEM Graduates in America Act represents a broader effort to reform the U.S. visa system, with a particular focus on addressing the needs of highly skilled international students. STEM fields are among the most popular areas of study for foreign students in U.S. universities, and the proposed legislation seeks to make it easier for these graduates to remain in the U.S. after completing their education. By simplifying the visa process, the bill aims to boost H1B visa issuances for STEM graduates, ensuring that the U.S. retains top talent in key industries.
In addition to legislative changes, the U.S. government has also implemented new rules governing the H1B visa program. Starting from April 1, 2024, the U.S. will introduce an increased visa fee for H1B applicants. This move is part of a broader effort to reform the visa system and address concerns about the fairness and efficiency of the H1B program. The fee hike is expected to have a significant impact on companies that rely heavily on the visa to hire foreign workers, particularly in sectors like technology and healthcare.
Meanwhile, Indian investors are increasingly turning to alternative visa options to secure long-term residency in the U.S. One such option is the EB5 visa program, which has seen a surge in applications from India in recent years. The EB5 program offers a pathway to permanent residency in the U.S. for foreign investors who make significant contributions to the U.S. economy by creating at least 10 permanent jobs. According to recent data, the number of EB5 visa applications from India has skyrocketed, rising from approximately 750 applications in 2019 to over 10,000 applications in 2022.
The EB5 visa has become an attractive alternative for Indian nationals who may face challenges in securing H1B visas or student visas. By investing in the U.S. economy, applicants can gain a pathway to permanent residency, bypassing the competitive and often restrictive H1B visa process. This trend reflects a growing interest among Indian investors in securing long-term residency in the U.S. through investment-based immigration programs.
Piyush Goyal’s remarks mark a pivotal moment in India’s approach to international relations, as the H1B visa issue is now considered resolved. With the focus shifting to economic and strategic partnerships, both the U.S. and India are exploring new avenues for collaboration. As the U.S. introduces reforms to its visa system and India’s investors increasingly turn to programs like the EB5 visa, the landscape of U.S.-India relations is evolving, with both nations seeking to strengthen their economic ties in the years to come.