GS Paper 2:
Topics Covered: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
Context:
The U.S. House of Representatives has introduced the ambitious 2022 Act to create opportunities for America’s manufacturing, preeminence in technology, and economic strength, or America COMPETES Act of 2022.
- It proposes to open new perspectives for talented people from around the world with a new home visa.
Rationale behind this legislation:
To strengthen supply chains and revitalize the engine of innovation in the country’s economy to surpass China and the rest of the world for decades to come.
Key Provisions:
- $ 52 billion to further encourage semiconductor production in the U.S.
- $ 45 billion for grants and loans to improve supply chain resilience and manufacturing, among other programs.
- Funding to address social and economic inequality, climate change and immigration. For example, it offers an exemption for STEM PhDs from the green card limit and creates a new green card for entrepreneurs.
- The bill authorizes $ 600 million a year to build manufacturing facilities to make the United States less dependent on solar components manufactured in Xinjiang, China.
- It creates a new “W” classification of nonimmigrants for employers with a stake in a newly created entity, essential employees of a newly created entity, and their spouses and children.
Significance for India and the Indians:
It would mean more opportunities in the US for Indian talent and skilled workers.
- Every year, Indians and Indian companies corner the lion’s share of H-1B work permits issued that year. With this new category, Indian professionals will probably have a better chance of opportunities than the law is likely to offer.
Work visas for India:
There are 2.7 million Indian immigrants residing in the United States as of 2019, and the country is the second most popular destination for Indians living abroad, after the United Arab Emirates (3.4 million).
The IT revolution, arrival of internet and low-cost computers in developing nations like India has given rise to the number of people who are willing to work at relatively low costs in the USA which is a win-win situation for both the employer and the employee.
- The USA administration issues a certain number of visas each year to fill a vacuum of highly-skilled low-cost employees in IT and other related domains.
- These visas allow companies from outside the USA to send employees to work on client sites.
What are H-1B, H-2B, L and other work visas?
In order to fill a vacuum of highly-skilled low-cost employees in IT and other related domains, the US administration issues a certain number of visas each year which allows companies from outside the US to send employees to work on client sites.
H-1B: Person is Specialty Occupation: To work in a specialty occupation. Requires a higher education degree of its equivalent.
L1 visas allows companies to transfer highly skilled workers to US for a period of up to seven years.
H-2B visas allow food and agricultural workers to seek employment in the US.
J-1 Visas: It is for students on work-study summer programmes.
InstaLinks:
Prelims Link:
- Differences between H1B, F1 and M1 Visas.
- Difference between an NRI and an OCI cardholder.
- When OCI and PIO were merged?
- The Citizenship Amendment Act, 2019 grants citizenship to?
- Constitutional provisions related to citizenship in India.
Mains Link:
Discuss the impact of recent changes in US visa rules on Indian students in the US.
Sources: Indian Express.
