'They Need Skilled Foreign Professionals': Experts On How H-1B Visa Could Benefit US

Amid controversy over the Trump administration’s plan to impose a $100,000 fee on new H-1B visa applications, Indian experts weighed in on the impact of the move. They broadly agreed that H-1B visas had been a net positive for the US economy, arguing that Washington should recognise the programme’s benefits as the country continues to rely on skilled foreign professionals who often work at comparatively lower costs.

H-1B visas add to the tax-paying base. The US should understand its benefit and the consequences of such a move, as jobs can leave their country as well. Many jobs will go to India or increase here, said Santosh Rao, head, research, partner, Manhattan Venture Partner.

US President Donald Trump issued a proclamation to hike the annual fee for H1-B visas. Visa applicants will have to pay $100,000 through their employer or they will be barred from the country.

The H-1B visa has long been a political football. The US sees a lot of Indians and foreigners in the IT industry and believes they take away local jobs. However, it's far from the truth, Rao said.

"A lot of kids in the US are coming out of college with degrees that are not particularly useful, like bachelor's of arts in business communication, marketing etc. They learn vague skills. What Trump wants companies to do is to hire more advanced professionals from overseas and train kids graduating from the schools in the US," said Edward Yardeni, president, Yardeni Research.

However, it is not easy to do with professionals skilled in computer software, programming, and doctors. "I think it's not a great idea," he said in an interview to NDTV Profit.

The US doesn't really have an unemployment problem when it comes to professionals. The unemployment rate is around 4%, which means companies in the US do not have many people to hire, he said.  The US should continue the programme as the country needs them.

Nevertheless, he said the move could work to India's benefit as skilled professionals would decide to stay back here.