Could Trump 2.0’s H1B visa restriction be a boost to Modi 3.0’s Atmanirbhar Bharat? What the SBI report says – Times of India

NEW DELHI: The supposed H1B visa restrictions under Trump 2.0 could potentially serve as a boost to Modi 3.0’s Atmanirbhar Bharat (Self-Reliant India) initiative, which would accelerate “reforms in domestic manufacturing, self-reliance and foreign investment,” said an SBI report.
The report elaborates on the possibility of new US President Donald Trump imposing stricter visa rules, especially on visas H-1B visa program. It said that while the rules would on the one hand lead to higher costs for India’s IT and ITes sectors in the US, on the other hand it would “provide an opportunity for India to strengthen its own domestic manufacturing through its” Atmanirbhar Bharat’ initiative.” .

https://toi-infographics.indiatimes.com/graphs/kZCer/3/

“H-1B visa restrictions could lead to reduced labor mobility, affecting the recruitment opportunities of Indian IT companies operating in the US. This could lead to Indian companies diverting resources to local staff in the US at higher costs, which could put pressure on margins. for companies,” the report said.
“While Trump’s policies may pose challenges, it also presents an opportunity for India to strengthen its own domestic manufacturing through its ‘Atmanirbhar Bharat’ initiative. We can try to accelerate reforms in domestic production, self-reliance and foreign investment,” it added.
Trump has opposed the H-1B program, arguing it hurts American workers. During his previous term, visa rejections saw a sharp increase. In 2020, his administration also tried to impose higher minimum wages on H-1B visa holders, but the courts blocked the move.
Under Trump 1.0, the number of non-immigrant visas issued by the US has remained relatively stable at around 1 million per year. However, around 1.4 million Indians received non-immigrant visas in 2023, marking a significant increase, the report said.