New Delhi, Aug 8: Clampdown on the controversial H-1B visa programme may lead to the US IT sector lose its competitive edge in the market.
A top American think-tank said that the Information Technology (IT) sector in the US will find it difficult to attract open talents from India and America, news agency PTI reported.
The Center for Global Development (CGD) in a report named ‘The IT Boom and Other Unintended Consequences of Chasing the American Dream’ also stated that H-1B visa is beneficial for both India and the US.
Gaurav Khanna, fellow at the CGD and co-author of the research paper, said “It is really important to make sure that the I-T sectors from both countries are allowed to attract the right kind of people, because they really allow for innovation and growth in both the countries.”
In the report, there is a detailed description of how the H-1B visa programme will affect the economies of the US and India.
Khanna told PTI, “Both the economies have really benefited from the H-1B programme.”
“If you think about what happens in India, you know the prospect of migrating to the US and earning such a high wage …it seemed they really encouraged certain students and workers to acquire skills that would be valued by the H-1B programme,” he added.
The report also found that better technology, as a by-product of this immigration of technical workers, hiked the overall productivity of other sectors as well, and consumers of computer-related goods enjoyed better software and lower prices.
It revealed one per cent decrease in price for US IT products and an 7.4 per cent fall in Indian IT products.