How are the following policies beneficial to India? I’m trying to understand the economic rationale behind these actions, using India as an example.

At first glance, it seems like it could be detrimental to India, as the educated and skilled workforce is leaving the country, which could negatively impact the economy, right?

However, I assume economists have considered this, and there may be a reason behind these policies. Could someone explain the economic rationale behind this?

According to this Reuters article, the Indian government has stated that US H1B visas benefit both the United States and India.

Additionally, in Australia, Indian students are granted an extra year of stay after completing their master’s degree, a privilege not extended to students from other countries. This change was implemented following the trade agreement between India and Australia.

Question: How does Indian Government benefit from more Indians getting H1B visa?
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by Incomplete-Sentenc

9 comments

  1. Brain drain? Nah, call it skill export with bonus remittances.

  2. So they would be “brain draining” labor but the assumption with work visa’s is that a lot of the time, they will send some of that money back home. Lets just assume its 20k in India or 150k in the USA, and they send 50k back home, thats essentially 50k injected into the Indian economy.

    Thats one basic reason why its still possibly decently good

  3. They send the money back. They come here get jobs making more than Americans, and American businesses take jobs overseas. Think about any customer service calls, where do they go? Look at American stats on the highest earners in America, Indians. They hire only each other and get dual citizenship. It’s been going on quietly for decades. Come to Western Pa and see what is going on. And they go back to India taking the money they make here.

  4. Simple. Look at Indian outsourcing companies. They all start with an Indian becoming a Director in a fortune 500 company. The director has a “friend” back home that has a staffing company. That staffing company now has a contract with the American company. In reality, that person has a stake in the business and gets money as well from his “friend’s” staffing company.

  5. Skill export. More like it’s probably benefits who are importing them.

  6. Because unless they get a green card in process early in their stay they are going back after five years when their second visa runs out, taking the expertise they learned state side and working for Tata.

  7. Because India’s system is unable to utilize those people back home. India is socialist with crony capitalism, also, it’s playing catch up growth.

  8. Two ways

    1. Remittances – Indians are a family oriented bunch. They usually send money back home to their and their spouses parents to help them have a better standard of living. Given the 100 year wait for green card wait for anyone born in India, a lot of them buy their homes, invest their money back home in India. Makes sense given one can’t retire in the US and even before that could have to leave on a 60 day notice in case of a layoff.

    2. Outsourcing/Satellite offices – The reason so many US companies have tech offices in India rather than other low cost destinations is that a lot of Americans have worked with Indians, building a level of comfort and familiarity. There is usually an Indian in the room that can tilt the decision towards investing in India.

    Both of them is a net benefit to the Indian government, one earning foreign exchange and the other generating tax revenue and jobs for people in India.

  9. It’s not brain drain if these countries have a huge unemployment problem. By taking their workers, you’re just helping the government solve that problem. There’s also the added benefits of remittances and the fact that those people may come back to India to set up businesses

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