Mukesh Aghi, President and CEO of the US-India Strategic Partnership Forum (USISPF), emphasises its significance, stating, “H-1B is good for US companies, is good for the US economy; it basically helps US companies become more efficient, more effective, more competitive on a global basis.”
Speaking to CNBC-TV18, Aghi underscored the programme’s indispensable role in addressing workforce shortages, particularly in high-demand sectors such as artificial intelligence, cybersecurity, and quantum computing. As chip manufacturing plants rise across Arizona, Ohio, and New York, the dearth of skilled labour is increasingly apparent. “The issue is of supply and demand,” Aghi noted. “Demand is higher than supply itself, and that’s the reason companies go out and seek H-1B workers.”
The economic impact of restricting the programme is stark. According to Aghi, rejecting H-1B visas moves jobs overseas and has a measurable effect on the US economy. “For every 10% reduction in H-1B visas, it impacts the GDP by $86 billion,” he said.
Despite its merits, the H-1B system has faced criticism for abuse by certain staffing companies. These practices, Aghi acknowledged, have tarnished the program’s reputation. “Most companies hire legitimate people who are productive from Day 1. But some staffing companies have gamed the system,” he said.
The incoming Donald Trump administration appears poised to address these concerns by introducing new safeguards. Aghi believes measures like raising salary thresholds and prioritising US-educated international students in STEM (science, technology, engineering and mathematics) could strike a balance.
The controversy surrounding H-1B visas has also created rifts within the Republican Party. While prominent figures like Elon Musk and Vivek Ramaswamy advocate for the programme’s benefits in attracting global talent, others argue it undermines the “America First” agenda by disadvantaging American workers. Trump, however, has expressed support for the programme, aligning with Musk’s viewpoint.
The denial rate for H-1B visa petitions, reflecting changing policy priorities, surged from 13% in 2015 to 24% in 2018 during Trump’s first term before dropping to 4% during Joe Biden’s presidency. This balancing act will remain crucial as the Trump administration considers additional guardrails.
Edited Excerpt:
Q: What’s been your representation to the Trump administration right now with regard to H-1B visas? The Indian government’s plea and view is this is a visa regime, and Indians utilise this and help the US economy. It’ll be the US companies which will be harmed if you crack down on this visa regime. What’s your take?
Aghi: The issue is of supply and demand. You have a growing US economy, especially in the AI space, cybersecurity, and quantum computing. It requires highly intelligent, hardworking employees. And when you look at the chip plants being set up in the US — in Arizona, Ohio, and New York — one of the biggest challenges is a shortage of workers. So, the game of supply and demand shows that demand is higher than supply itself. That’s the reason companies go out and seek H-1B workers themselves. So, the US companies benefit a lot.
We have seen that if you reject 10 visas for workers looking to come to the US, nine out of 10 jobs move to other countries. The other stat I’d like to mention is that each 10% reduction in H-1B visas has an impact of $86 billion on the GDP of the US economy. The challenge is not about H-1B visas. It is about the abuse of H-1B visas by some companies.
Most companies tend to hire legitimate people who come in and become productive from Day 1. Staffing companies gaming the system give a bad name to the H-1B system.
So overall, our position is that H-1B is good for US companies, for the economy; it basically helps US companies become more efficient, more effective, and more competitive on a global basis.
Q: What would be your recommendation to the Trump administration? Donald Trump said today that he likes H-1B visas and that they would like to attract the right talent. Do you think the Trump camp will be balanced when putting any further safeguards in place?
Aghi: Yes, I think you will see more safeguards coming in so that the abuse of H-1B is curbed. One safeguard would be to raise the barrier on the salary structure. But more importantly, why don’t we reach out to US-educated international students in PhD programmes, graduate programmes, doing STEM work, and give them a pathway to get work permits in the US? S
Yes, they will put guardrails to ensure the abuse does not happen. But more importantly, leverage those people who have gone to the US education system and give them a pathway to work in the US.
Watch the accompanying video for the entire conversation.
