Attracting talent positioned abroad, Pg7

Key Highlights:

• In 2025, the U.S. imposed a $100,000 fee on new H-1B visa petitions, impacting Indian engineers and companies.
• The Indian government is encouraging overseas talent to reinvest in India through initiatives like GATI, eMigrate V2.0, VAJRA, and the Know India Programme.
• Maharashtra, Delhi, and Karnataka are trying to attract returning talent with startup ecosystems and policies.
• In FY2024, Indian nationals received 71% of the H1-B approvals, with 46% holding a master's degree.

Detailed Insights:

• The U.S. H-1B policy shift has led to a 30% increase in Indian students from Ivy League universities seeking jobs in India.
• Indian states prioritize institutional support over family relocation policies, leading to returnees viewing India as a temporary assignment.
• Maharashtra's startup policy faces challenges due to high household entry costs, despite declining firm costs.
• Delhi attracts returnees due to its institutional centrality but favors those with existing institutional capital.
• Karnataka's decentralization efforts are hindered by inadequate global research infrastructure, healthcare, and education.
• India's R&D investment is only 0.64% of GDP, significantly lower than the U.S., China and Israel, due to limited private sector incentives.
• Incentivizing private R&D investment and diversifying into sectors like software, semiconductors, and advanced manufacturing is crucial for innovation.

Key Concepts Involved:

• H-1B Visa: A non-immigrant visa that allows U.S. employers to temporarily employ foreign workers in specialty occupations.
• GATI (Global Access to Talent from India): An initiative to re-engage India’s global talent.
• R&D Investment: Funds allocated towards research and development activities to foster innovation.