GS 2: International RelationsGS 3: EconomyPrelims

Delhi's fingers crossed

US H-1B visa restrictions threaten Indian IT sector, potentially boosting Indian GCCs, impacting thousands of tech professionals.

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Key Highlights:

  • New rule effective September 21 requires H-1B visa holders to be in the US.
  • The US Congress authorizes 65,000 H-1B visas annually, plus 20,000 for US master's degree holders.
  • Indians receive over 70% of approved H-1B petitions since 2015.
  • Infosys and TCS received more H-1B approvals than Google, Meta, and Microsoft in FY24.

Detailed Insights:

  • The rule impacts Indian IT companies and US industries relying on H-1B visa holders.
  • Nasscom states that business continuity will be disrupted for onshore projects.
  • The Indian government anticipates a boost to Global Capability Centres (GCC) in India.
  • Concerns exist about India's capacity to absorb returning workers in comparable roles.
  • The US healthcare industry relies on H-1B visas to fill specialized roles.
  • The USCIS uses a lottery system to select H-1B applicants due to high demand.
  • The initial H-1B visa validity is up to three years, extendable to six years.

Key Concepts Involved:

  • H-1B Visa: A non-immigrant visa that allows US employers to temporarily employ foreign workers in specialty occupations.
  • Global Capability Centers (GCC): Centers established by multinational corporations in other countries to perform specific business functions.
  • USCIS: The US government agency that oversees lawful immigration to the United States.
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