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H-1B Visa Rules Need Update, US Tech Executives Say; Indian Tech Workers Essential for Global Competitiveness

In an era where technological prowess defines economic supremacy, the narrative surrounding U.S. technology firms and restrictive immigration policies has reached a critical juncture. Senior leaders in the tech industry are voicing their concerns about the growing obstacles that hinder the influx of Indian talent, which they believe is essential for maintaining the country’s edge in innovation. This sentiment has been reinforced by a recent survey conducted by Manifest Law, shedding light on the vital importance of high-skilled immigrants for the tech sector.

### Survey Highlights Deep Concern

The findings from the Manifest Law survey, which involved over 500 senior tech leaders, reveal a stark reality about the current state of U.S. immigration policy. A staggering 93% of respondents stated that high-skilled immigrants are crucial for the U.S.’s global competitiveness. Moreover, 35% described these immigrants as “critically important” for their companies’ futures. “The roles most affected are in STEM fields, encompassing software engineers, artificial intelligence (AI) specialists, hardware experts, and even startup founders,” explains Nicole Gunara, a principal immigration lawyer at Manifest Law. This perspective highlights that these individuals are more than just employees; they are innovators whose contributions are pivotal for technological advancement.

### Shortages in AI Talent Drive Urgency

The survey also pointed out an alarming shortage of AI talent as a pressing issue facing the immigration landscape. This shortage is identified as the second-most significant challenge, following global competition for skilled workers. Tech leaders warn that access to AI talent could be paramount for sustainable growth in the sector. According to research from McKinsey, companies that effectively integrate AI and digital tools can outperform their counterparts by as much as sixfold in shareholder returns. With the current sluggish immigration policies, the U.S. stands on the precipice of losing its competitive advantage in critical technological industries.

### Visa Costs and Delays Rising Sharply

Another significant barrier for U.S. tech firms lies in the rising costs and delays associated with the visa application process. The U.S. Citizenship and Immigration Services (USCIS) recently raised the base H-1B petition fee for larger employers by a staggering 70%, with the initial registration cost increasing from $10 to $215 for the fiscal year 2025. This fee hike disproportionately affects Indian nationals, who comprised an astounding 72.3% of all H-1B visa recipients from 2022 to 2023. Gunara emphasizes that “Indian nationals fill a massive part of the U.S. STEM talent gap,” highlighting that the domestic pipeline simply cannot meet the demand.

### Support Grows for Targeted Reforms

In light of these challenges, survey respondents expressed a strong desire for immigration reforms tailored to the tech industry. Approximately 56% of leaders advocate for an increased H-1B visa cap, while another 56% support the introduction of a new visa specifically for venture-backed startups. Furthermore, 62% of respondents called for industry-specific visa programs, and 64% are pushing for clearer pathways from student visas to green cards. Overall, 74% believe that the immigration process requires simplification, with 67% supporting investments in modernizing the associated technology. Gunara notes, “We see firsthand how high-skilled legal immigrants drive innovation in the tech sector. Ensuring they have a clear and timely path to contribute isn’t just good policy; it’s good business.”

### Warning on Long-Term Impact

Beyond immediate concerns, experts like Orn Bodvarsson, a senior economist and academic, warn of the potential long-term ramifications of current immigration policies. He argues that restrictive measures could diminish the attractiveness of the U.S. for Indian students and professionals. “They are facing fewer opportunities, higher risks, and diminished returns on their education investments,” Bodvarsson points out. This shift could eventually lead to a significant decline in the demand for U.S. university admissions and job offers, impacting both the short and long-term influx of Indian professionals into the country.

### Attracting Global Talent

As the U.S. strives to become a leader in next-generation technologies, experts contend that its success hinges not only on capital and infrastructure investment but also on its ability to attract global talent. Without a reevaluation of existing immigration policies to create a more accessible and modern framework, the country risks lagging behind in essential areas such as AI, entrepreneurship, and other growth sectors. The call for reform is not merely a matter of policy but a clarion call for the future of innovation in the U.S. technology landscape, emphasizing the critical role that immigrant talent plays in regulatory frameworks and corporate strategies alike.

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