Paper: GS – II, Subject: International Relations, Topic: India’s relations with major powers, Issue: H-1B visa issue.
Context:
The U.S. government has imposed a one-time $100,000 fee on new H-1B visa applications. It affects foreign students, especially Indians, who form the largest group of international students in the U.S.
Key Highlights:
Indian Students in the U.S.:
- Largest international student group: Indians recently overtook Chinese students in U.S. universities.
- Subject preference: Strong preference for STEM fields (Science, Technology, Engineering, Mathematics):
- 75.5% of Indian students in U.S. are in STEM courses vs. 50% of Chinese students (Chart 2).
- STEM graduates are most sought after by employers.
Impact of Visa Fee Hike:
On Students:
- Students in the F-1 visa and H-1B visa pipeline face higher barriers.
- About 37% of initial H-1B petitions in 2023 were from foreign students, including a large share of Indians.
- High costs may deter aspirants from middle-class families.
On Education Aspirations:
- Fee hike may discourage new enrolments, particularly in STEM programs.
- Could reduce demand for U.S. universities, pushing students toward other destinations such as Canada, UK, Australia.
On Employment:
- Delays and rising costs affect students’ ability to secure post-study work opportunities.
- Creates uncertainty in career planning for Indian youth abroad.
Economic implications:
- International students already spend $40,000 annually on average in the U.S. Further, 54.5% of the students depend on personal/family funds while others rely on employment, scholarships, or external sources.
- New visa fee adds to the financial burden, making U.S. education less affordable.
Way Forward:
- Diversify Education Destinations: Encourage Indian students to explore affordable options in Europe, Australia, and Asian universities.
- Strengthen Domestic Capacity: Build world-class institutions under NEP 2020 and GATI initiatives to retain talent.
- Bilateral Engagement: India should negotiate mobility partnerships with U.S. to protect its student community.
- Financial Support Mechanisms: Expand education loans, scholarships, and PPP models for overseas education.
Conclusion:
The U.S. visa fee hike creates a new barrier for Indian students, who form a vital part of global talent pipelines. India must adapt strategically by improving domestic education, expanding bilateral agreements, and supporting students financially.
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