From Brain Drain To Brain Gain: H1B Is India’s Opportunity To Outflank US In AI Race

The global race for artificial intelligence supremacy is intensifying, and India is well-positioned to assert its influence by nationalising its AI and tech talent. This move is especially significant given the challenges the United States faces in acquiring and retaining foreign-born professionals, particularly under political climates where immigration policies are subject to greater scrutiny.

The reality is that the US AI sector owes much of its ascendancy to immigrant contributions, a fact evidenced by several noteworthy statistics. Over half of leading AI companies in the United States were founded or co-founded by immigrants or their children; Indian nationals in particular have played a major role, with around 65% of top US AI companies tracing some leadership to the Indian diaspora and in academia, 70% of full-time graduate students in AI-related fields are international. These figures underscore a level of dependence that could become a strategic liability, if restrictive visa programs and domestic political tensions deter future talent inflows.

As the US grapples with caps on H-1B visas, long green-card wait times, and surges in nationalist rhetoric, highly skilled foreign professionals may begin exploring alternative destinations. The rise of nationalistic policies has potential repercussions for institutions and industries accustomed to a steady influx of talent, particularly in fields like AI, computer science, and engineering.

China’s proactive efforts to reverse its own brain drain, by offering incentives to returning scholars and entrepreneurs, suggest that vibrant home markets can successfully recapture their diaspora, albeit the authoritarian nature of the Chinese state has made it harder for Chinese expats to move back.

India, with a large tech-savvy population and a history of sending many of its brightest minds abroad, could follow suit. By implementing policies designed to retain, repatriate, or selectively deploy Indian tech professionals, the country might not only strengthen its own AI infrastructure, but also emerge as a central node in the international AI ecosystem.

A focus on domestic R&D, robust government funding, and streamlined approval processes can form the backbone of a policy aimed at keeping top engineers and researchers on home soil. Adding sweeteners such as performance-based bonuses, housing support, and dedicated research labs would mirror the tactics adopted by China in luring back its overseas talent. India’s large and rapidly growing market offers a compelling draw for entrepreneurs, and targeted policy measures could deepen that appeal. If India positions its tech workforce as a strategic resource, it could negotiate beneficial terms with Western nations seeking skilled manpower. Advanced chip technology transfers or joint R&D programs could become part of bilateral agreements, ensuring that India’s investment in its own talent pays dividends beyond mere retention.

Viewing AI and high-level STEM talent as central to national security is no longer an abstract concept. Artificial intelligence has critical applications in defence, healthcare, and finance — sectors where a shortage of skilled personnel can have serious ramifications for economic stability and international competitiveness. Retaining talent ensures that technical breakthroughs, intellectual property rights, and significant revenue streams stay within India’s economy rather than migrating abroad. The return on investment, measured both in monetary terms and strategic capacity, can be immense.

In the end, policies promoting the nationalisation of AI and IT talent speak to an evolving global landscape in which knowledge—and those who possess it—are among the most valuable assets. Countries that succeed in both cultivating and preserving this talent will be better equipped to pioneer transformative technologies.

At the moment, an uneasy blend of inward-looking US immigration policies, rising nationalist sentiment, and intensifying competition from players like China has opened a window of opportunity for India. By embracing a new paradigm that emphasises securing and utilising its own AI talent, India can chart a path toward long-term technological leadership and ensure that it emerges as one of the most influential voices in the next wave of innovation.

S. Yash Kalash is research director of digital economy at the Centre for International Governance Innovation.

Disclaimer: The views expressed here are those of the author, and do not necessarily represent the views of NDTV Profit or its editorial team.