Sometimes, your biggest adversary (bane), who resorts to bullying, turns into your biggest friend (boon). The adversary in disguise who is out to help you achieve your goals.
The US has imposed a $100,000 annual fee for H-1B visas for foreign workers and a 3.5% tax on foreign remittances. This is a targeted decision. 71% of H-1B visas are held by Indian citizens, and a major portion of these visa holders send money back to India.
This decision by the US government will directly and adversely affect Indians aspiring to go to the US for a career. The brightest talents (students and professionals) have been migrating to the dreamland of the America to pursue their dreams which couldn’t find an ecosystem and environment in India. Not only this, but also the Indian government has been investing billions of dollars every year in these talents to educate and train them. This has resulted in increased costs for India. Apart from this, millions of dollars are flowing to the US for education in US universities and higher education opportunities.
This move by the US will change this dynamic situation forever. The flow of talent from India to the US will fall dramatically. This will result in Indian talent staying back in India, and they being used by Indian companies. Also, many will take the route of entrepreneurship, which will eventually create a cohesive and supportive environment for entrepreneurship in India, making entrepreneurship a preferred choice for Indians over jobs in general and government jobs in particular. It is a boon in disguise. This will result in more talent working for India, turbocharging innovation and research in India, changing and charting the future of India.
In the short term, this move by the US to impose fees on H-1B visas is going to cost India in the form of dwindling foreign exchange reserves and a fall in remittances to India. That means more stress on India post 50% tariffs on Indian exports.
Half of the work has been done by the American President Donald Trump and his team. I hope, half of the work is done by the Indian government and PM Narendra Modi takes charge to take India’s digital economy from just e-commerce to the real economy, which is based on research and innovation, and manufacturing becomes a main activity in the Indian economy. Reforms in the GST regime, as well as changes in personal income tax structure a step towards a better, robust and resilient Indian economy.
The US has imposed a $100,000 annual fee for H-1B visas for foreign workers and a 3.5% tax on foreign remittances. This is a targeted decision. 71% of H-1B visas are held by Indian citizens, and a major portion of these visa holders send money back to India.
This decision by the US government will directly and adversely affect Indians aspiring to go to the US for a career. The brightest talents (students and professionals) have been migrating to the dreamland of the America to pursue their dreams which couldn’t find an ecosystem and environment in India. Not only this, but also the Indian government has been investing billions of dollars every year in these talents to educate and train them. This has resulted in increased costs for India. Apart from this, millions of dollars are flowing to the US for education in US universities and higher education opportunities.
This move by the US will change this dynamic situation forever. The flow of talent from India to the US will fall dramatically. This will result in Indian talent staying back in India, and they being used by Indian companies. Also, many will take the route of entrepreneurship, which will eventually create a cohesive and supportive environment for entrepreneurship in India, making entrepreneurship a preferred choice for Indians over jobs in general and government jobs in particular. It is a boon in disguise. This will result in more talent working for India, turbocharging innovation and research in India, changing and charting the future of India.
In the short term, this move by the US to impose fees on H-1B visas is going to cost India in the form of dwindling foreign exchange reserves and a fall in remittances to India. That means more stress on India post 50% tariffs on Indian exports.
Half of the work has been done by the American President Donald Trump and his team. I hope, half of the work is done by the Indian government and PM Narendra Modi takes charge to take India’s digital economy from just e-commerce to the real economy, which is based on research and innovation, and manufacturing becomes a main activity in the Indian economy. Reforms in the GST regime, as well as changes in personal income tax structure a step towards a better, robust and resilient Indian economy.
Rajeev K Upadhyay
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