USA is maintaining the interest for it’s people by diminishing the facilities for the non-Americans, My first point of conflict is whom you identify as American. Indigenous peoples, commonly called “American Indians” are the pre-Columbian ancestors; make up 0.97% to 2% of the population as per 2010 census. History says the ethnic heritage of modern Americans is from many different national origins. So Americans identify themselves by the citizenship and allegiance. But there are many residents who are non-citizen, dual citizens or emigrant. So in the present context we can come to a conclusion that till date whosoever has already got the American Citizenship, be it from any country, they become the integral part of America, and rest of the world is non-America! And it includes first – generation potential immigrants who are in H1B visas.
Under the title, “Protecting American Jobs and Workers by Strengthening the Integrity of Foreign Worker Visa Programs”, the H1B visa holders would be phased out of the country and new workers will not be able to enter considering the high salary requirement set by the rule. Because it will not be viable for the companies from other countries to serve US clients on higher cost. One point to be noted, there is no lack of skill in America, but the native skills are very expensive. With the new rule, foreign workers will prove to be more expensive, as the companies will become more tax liable to maintain the foreign workers besides the increased salary level. Infosys Co-founder Mr N.R. Narayana Murthy said businesses cannot fight government and have to work within the limitations. This has been proved by the Ford’s recent action to withdraw the proposed unit in Mexico. American companies will be bound to spend more on human resource. On the other hand outsourced companies will look for new business strategies and negotiation with their US clients to maintain their profit margin. Both will increase the cost of US product. In today’s global scenario, thus America will confine themselves within their territory and will lose on the global market.
The direct adverse effect of having higher salary requirements for H-1B visas will obviously mean that the flow of workers to the USA will reduce as the countries like India won’t be able to send that many people at the doubled salary benchmark. But exploitation by the companies to accomplish their projects in low cost will reduce. On the other side, USA companies now would show interest for offshore projects through outsourcing to save on cost. Thus lot more job opportunities will be raised in the foreign countries (like India) with further reduced cost as the salary will not be in dollar. So eventually job market of America will shrink gradually. On the other hand, Indian companies will give emphasize on other markets also.
The order would also shorten the duration of the permitted Optional Practical Training period provided to foreign students who wish to work in the USA. The OPT gives students the visa to work in the States for a certain period after the study. At present, this is 24 months for STEM students and 12 months for non-STEM students. For details on post study opportunities in USA you may read http://theoutreach.co.in/blog/study-in-usa-new-opt-rules.html. But as the H1B order has the provision setting aside 20% of the annual allocation of H-1B visas for small and startup employers with 50 or fewer employees, which will work as a way-out from the F1 visa for the bright students studying in the USA universities. But eventually startups will grow and will cross the benchmark of small company. So continuous flow of startups required to support the pass out students.
Another blow is slash of the corporate tax to 15% from the existing 35% for American businesses. That will attract many business house to move back to America or to open –up in America in view of saving tax. Many corporate giants, who are now operating in other parts of the world, will be attracted to American market. This will reduce the jobs in other countries.
Scrapping Obamacare is a big blow for Indian pharma sector. Pharmaceuticals constitute the second biggest exports of India to the U.S. India’s strength in manufacturing affordable generic drugs complemented the objectives of Obamacare. Five years of Obamacare has resulted $66 billion pharma exports to US. Indian drug companies have been badly affected. In turn, Indian IT companies which provide support to the program have also led to job cuts in India.
So the bottom-line is, Indians can no longer be happy with export of brain to the US market. They should look for other emerging markets also for study and jobs.