NEW DELHI: The supposed H-1B visa restrictions under Trump 2.0 could potentially serve as a boost to Modi 3.0’s Atmanirbhar Bharat (Self-Reliant India) initiative accelerating “reforms in domestic production, self-reliance, and inward investment,” according to an SBI report.
The report delves into the possibility of US President elect Donald Trump imposing stricter visa rules, especially on H-1B visa program. It said that, though the rules would lead to increased costs for Indian IT & ITes sectors located in US on one hand, it would offer “India an opportunity to strengthen its own domestic manufacturing through its “Atmanirbhar Bharat” initiative,” on the other.
“H-1B visa restrictions can lead to decreased labour mobility, affecting the hiring capabilities of Indian IT companies operating in the US. This may result in Indian firms to allocate resources towards hiring locally in the US at a higher cost, which could strain margins for companies,” the report said.
“While Trump’s policies may pose challenges, they also offer India an opportunity to strengthen its own domestic manufacturing through its “Atmanirbhar Bharat” initiative. We may look to accelerate reforms in domestic production, self-reliance, and inward investment,” it added.
Trump has opposed the H-1B program, arguing that it harms American workers. During his previous term, visa rejections saw a sharp rise. In 2020, his administration also sought to impose higher minimum wages for H-1B visa holders, but the courts blocked this move.
Under Trump 1.0, the number of non-immigrant visas issued by the US remained relatively stagnant at around 1 million per year. However, in 2023, approximately 1.4 million Indians received non-immigrant visas, marking a significant increase, the report said.