Donald Trump’s statements on eliminating US visas for highly skilled workers pose a risk to India’s growth model, according to an adviser to Prime Minister Narendra Modi.
Trump, the New York real estate mogul who leads in the race for the Republican party’s nomination for president, said the H-1B visa programme should be scrapped even though his company uses it. At a debate on Thursday night, Trump called the programme “very, very bad for workers” and said “we shouldn’t have it.” Arvind Subramanian, the chief economic adviser to India’s finance ministry, said yesterday he was concerned about Trump’s remarks.
“That’s very worrying for our model of growth going forward,” Subramanian told a conference in New Delhi hosted by the International Monetary Fund.
India benefits more than any other nation from the H-1B visa programme, which allows skilled foreign nationals to work at US companies. Asia’s third-biggest economy accounted for about two-thirds of the skilled-worker visas given in the year through September 2014, according to the latest US government data.
Modi toured Facebook’s Silicon Valley headquarters during a visit to the US last year. US technology companies have backed efforts to boost the number of visas.
The US accounts for about 60% of India’s software exports, with part of those earnings coming from on-site work.
Researchers at the Peterson Institute for International Economics estimate that earnings generated by skilled visa holders from India are almost equal to the nation’s total exports of goods and services to the US.
Subramanian: Concerned about Trump’s remarks.