Donald Trump’s plan to boost the Indian economy

As the Trump administration seems inclined to gut the H-1B visa program, the Washington Post reports: The H-1B program provides American companies with cheap, temporary contractors who often work longer hours than Americans and take on the monotonous programming jobs Americans scorn. Proponents of the program argue that foreign workers increase innovation at American companies as well as contribute to local economies. A few Indians who came on work visas have even gone on to become heads of important American companies.

Meanwhile, India’s growth as a global tech hub has been hampered as tens of thousands of workers have left.

Over the past decade, though, cities like Hyderabad and Bangalore have slowly but surely gained prominence. At first, Hyderabad was mostly a base for outsourcing companies servicing American clients, but now it is home to the biggest offices of Apple, Google, Microsoft and Facebook outside the United States. Amazon, Dell, Uber and others have major operations there. All have huge campuses in a part of the city officially known as Cyberabad.

Cyberabad’s existence is the result of investments in education and infrastructure made by N. Chandrababu Naidu, the chief minister of Andhra Pradesh, where Hyderabad was located until the state was bifurcated in 2014. A network of dozens of information-technology institutes trained a generation of engineers and software developers to work back-end jobs for American companies.

For that generation, getting an H-1B was the holy grail. Even though the work in America could be dull, being there provided a chance to engage with an invigorating culture of innovation that just wasn’t present in India yet. And of course, working abroad meant a huge increase in income and prestige.

But the H-1B cap meant that the bulk of Indian tech workers stayed back. The current cap — not just from India — is 65,000, plus another 20,000 who have graduated from American universities with advanced degrees, down from almost double that at the beginning of the 2000s.

Among those who do get the visas, most ultimately return to settle and work in India. In Hyderabad, many of those returnees are confident that their city can compete with Silicon Valley for India’s brightest young minds.

K.T. Rama Rao, the son of the current chief minister, was one of them. Now he’s the minister for information technology in his father’s government. He pointed to Apple as an example of how Hyderabad could absorb the thousands of workers in a potential future with far fewer H-1Bs — or without them altogether.

“Apple is already moving their maps division here, and they’re doing that because we’re producing more G.I.S. talent than anyone else in the world,” he claimed in an interview, referring to geographic information systems. “Ideally, a president of the United States would have a balanced perspective on business, but if he wants tech firms to stay, he should create better job readiness in the U.S.”

Rao said that legislation targeting big Indian outsourcing companies would wean them away from their dependency on servicing American companies. Without the visa program, they would have to engage in new lines of work that created value in Hyderabad and not abroad, he said. [Continue reading…]

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