Trump 2.0’s H-1B Visa Crackdown May Boost Modi Atmanirbhar Bharat Vision, New Report Suggests
Visa Crackdown May Boost Modi Atmanirbhar Bharat Vision: A recent report by SBI suggests that anticipated H-1B visa restrictions under US President-elect Donald Trump could indirectly fuel India’s Atmanirbhar Bharat (Self-Reliant India) initiative, championed by Prime Minister Narendra Modi. Trump has been a consistent critic of the H-1B program, which allows US companies to employ highly skilled foreign workers, especially in IT and tech sectors. During his previous term, H-1B rejections surged, and Trump’s administration attempted to raise the minimum wage for H-1B holders to favor American workers, though it faced legal setbacks.
The SBI report speculates that new H-1B restrictions could drive up costs for Indian IT and IT-enabled services (ITeS) companies operating in the US, as they might need to increase local hiring to comply with visa limitations. Such expenses could squeeze profit margins for Indian firms, particularly in the technology sector, where reliance on skilled Indian talent has been a key asset in competing in the US market.
However, the potential restrictions could create a strategic opportunity for India to reinforce its domestic manufacturing and tech sectors under Modi’s Atmanirbhar Bharat framework. According to the report, these challenges may “accelerate reforms in domestic production, self-reliance, and inward investment,” fostering a self-sustained ecosystem for talent and production within India.
This shift aligns with India’s goal of reducing dependence on external markets while encouraging growth in sectors like manufacturing, technology, and innovation. The Atmanirbhar Bharat initiative, launched in 2020, has targeted sectors such as electronics, pharmaceuticals, and automobiles for significant expansion and development. The report underscores that India could leverage this policy by increasing investment in these areas, potentially transforming the impact of H-1B restrictions into an economic advantage.
As both nations navigate policy shifts, the next few years could redefine India-US economic relations, with visa reforms potentially sparking a deeper commitment to domestic growth within India’s rapidly expanding economy.
