Search Asia Times

Advanced Search

 
South Asia

Indians turning their backs on the US
By Siddharth Srivastava

NEW DELHI - As a country racked by fears of terrorism, with a people disillusioned about the outsourcing of jobs to low-cost developing countries and the prevalent feeling that natives from other countries are not very welcome - the image of the United States as the "land of opportunity" still remains, but there are definite signs that the world's most powerful country is no longer the automatic first choice for an increasing number of Indians heading to Western environments for better living, jobs and education.

In the past few months, due to the pressures of an election year, as well as perceived terrorist threats, US federal and state governments have taken a series of measures, all of which are not very encouraging for non-immigrant visitors to the country. Consider the following: due to fears of Indians eating into American jobs, as well as slowdowns, especially in the tech sector, the cap on H1-B visas has been reduced from 195,000 last year to 65,000 this year. H1-B visas are provided to workers with college diplomas in the fields of education, technology and health care. Out-of-work tech workers have been returning to India by the hordes.

Then there is apprehension about the US making it compulsory for all visitors to pass through US-VISIT (United States Visitor and Immigrant Status Indicator Technology), the new electronic entry-exit system that will collect and share information, including biometric identifiers. The Indian government recently sought a clarification from the US against the fingerprinting of diplomatic passport-holders, meanwhile Washington's move has led China and Brazil to retaliate against US visitors.

It has not been good news on the outsourcing front either, with India facing the brunt of the public ire, including some state and federal bills which prevent government contracts from being outsourced.

A fallout has taken place within the student community, too, which is reaching out to other countries, such as Britain, Canada, Australia and Germany, as possible destinations for further studies. Education remains a prime export and foreign exchange earner, with nations in the lower spectrum such as India, Malaysia and Singapore also looking to make strides in this area.

Though the US remains by far the most popular destination for students from around the world, including India (over 70,000 students are currently studying there), a slow and definite change may be in the offing due to the tightening visa norms. Indian students, who form the single largest group of international students on US campuses, are looking at more friendly destinations.

According to the Council of Graduate Schools, an organization of institutes of higher education which has been tracking application numbers at 132 graduate institutes in the US, there has been a decrease in applications from international students in 90 percent of these schools this year. The master's and PhD-level schools enroll nearly half of all international graduate students in the US. The biggest decline has been in student applications from China and India - the two countries which send the largest number of students.
An indication of a shift away from the US becomes more glaring when compared to an almost exponential growth in the number of Indian students heading for other destinations. Affordable education, permanent residency, a more conducive environment, as well as lucrative employment opportunities, are the main attractions.

The number of Indian students heading to Australia doubled from 2,800 in 2001-02 to 5,700 in 2002-3, and is expected to rise to 9,000 students this year. Canada hopes to double the number of Indian students to over 5,000 this year. A study conducted by the British Council and Universities of the United Kingdom has indicated that Indian students will be the third largest contingent of overseas students in the UK by 2020, outnumbering those from the US, Germany and France. The study said as many as 29,800 Indians are expected to study in the UK by 2020, against 8,600 in 2005. A separate government-funded study has calculated that education has become one of Britain's most important export industries, earning 11 billion pounds (US$19.4 billion) annually, placing education in the same league as exports of oil and financial services.

There is also apprehension that the tightening of laws could have an impact on the number of Indians wishing to travel to the US. Travelers are not the only ones who are worried. A recent study by the US Government Accounting Office (GAO) identifies flaws inherent in the US-VISIT program.

The program, the GAO report maintains, is inherently risky, both because of its nature and the manner in which it is being managed. According to the report, the system is problematic because its mission is critical and multifaceted, the scope of which is large and complex.

As the program was designed to prevent the entry of persons who pose a threat to the US, it aims to control the pre-entry and entry status, as well as the exit of millions of travelers. The situation becomes more acute as by Congressional mandate, the system must be fully implemented by December 31, 2005.

There are also enough reports to suggest that Indian information technology (IT) workers are now seeking work permits from European countries such as Britain, Germany, and even Finland, where Nokia is headquartered. Indian companies such as Tata Consultancy Services are ramping up operations in Europe. In many countries now, IT visas are very flexible and quick and a statement from big employers puts job seekers on the fast track.

For the time being, though, the overall number of non-immigrant visas issued to Indians has gone up, compared to the same period last year. According to US embassy figures, all the categories of visas - B-1/B-2 business and pleasure visitor visas - have increased compared to last year. With the H1-B cap, it is expected that the number of L-1 or intra-company transfer visas that showed a decline last year is likely to go up this year.

The number of business visitors has increased due to more executives in the booming business and processing outsourcing industry heading to the US. The US consular offices have also been active in making the process of issuing visas less time consuming and hassling for the visitors.

However, with a clampdown of sorts happening, pegged to elections and terrorism, the days of the US as the hot shot student and job destination may soon be challenged by several others. While the US's actions may be a temporary attempt to stave off domestic concerns, the impact could be more permanent.

Siddharth Srivastava is a New Delhi-based journalist

(Copyright 2004 Asia Times Online Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)


Apr 23, 2004





Anti-outsourcing cry unnerves corporate giants (Mar 13, '04)

John Kerry: A thorn in India's side (Mar 6, '04)

India adjusts to tightened US worker visas (Dec 10, '04)

 

     
         
No material from Asia Times Online may be republished in any form without written permission.
Copyright 2003, Asia Times Online, 4305 Far East Finance Centre, 16 Harcourt Rd, Central, Hong Kong