To Americans, A return gift by President Trump…

The following article is based on my own interpretation of the said events and/ or publicly available information. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Debasish Acharya, MBA 2016-18, Vinod Gupta School of Management, IIT Kharagpur
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Background

High-Skilled Integrity and Fairness Act of 2017 will significantly impact Indian companies such as Infosys, TCS, and Wipro, in addition to US tech giants like Apple, Facebook and Google. Initially, idea behind H1B visa was aimed at supplementing the US workforce with high-skilled workers for doing those jobs for which Americans did not possess required skills. Over time, there have been many quibblings about many companies replacing American workers with foreign counterparts, as the latter can be hired at lower salaries using H1B visas with the same skillsets. Few cases were also evident of Americans being forced to train H1B holders to do their own jobs and gradually they were fired.

The new H1B visa reform bill aims at increasing the minimum salary for visa holders to $130,000, more than double the current minimum. This implies companies would either have to pay a higher costs for employing highly-skilled foreign citizens or hire the Americans. It would also remove the ‘per country’ cap for employment-based immigrant visas. A gap in demand and supply for talent for smaller companies, which cannot afford the highly skilled workforce, may be created by these visa reforms.

Opinion

Seventy years of independence and the state is such changes take place in the US and there is a tremendous impact on us. Do we think more about foreigners while formulating policies for our own. Certainly not, so why are the hues and cry if someone else does that? We call ourselves as a developing nation, but we like to serve it better staying abroad. Ranking fourth globally in brain drain, we have given ourselves a reason to worry. We fail to recognize our potential, numerous justifications will follow but somewhere in the search of an affluent lifestyle, we have lost our own identity. Let us start believing in ourselves, there will be few road-blocks but somewhere down the line we will not be worried in future.

Reference:

http://www.insidermonkey.com/blog/11-countries-with-highest-brain-drain-366967/?singlepage=1

http://timesofindia.indiatimes.com/world/us/h-1b-visa-reform-bill-introduced-in-us-house-of-representatives/articleshow/56888616.cms

 

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Why Trump is good

The following article is based on my own interpretation of the said events and/ or publicly available information. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

T R Srinath, MBA 2016-18, Vinod Gupta School of Management, IIT Kharagpur

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A new bill introduced by Democratic Congresswoman Zoe Lofgren proposing changes in the H-1B visa programme seeks to raise the minimum salary under the scheme to $1,30,000 from the current $60,000. The legislation, if passed, could hit Indian and American IT companies which use H-1B visas to hire foreign skilled workers, including Indians.

Even 8th standard social studies textbooks talk about the menace of brain drain. We’ve been taught that brain drain is bad and that the flight of skilled and educated Indians to foreign countries is something that causes harm to the country. Even though they might bring in a little forex, the loss of fine human capital does irreparable harm to the nation’s economy.

That being said, we must welcome this bold move of the Trump government. Nowadays, settling in the US is the only dream of many youngsters. Fantasized by the standard of living in the developed countries, these youngsters dream of settling there. Isn’t that a form of escapism? If your home is dirty, will you abandon it and settle in your neighbour’s house? Or, would you clean it up and live there peacefully? The brave will prefer the latter.

Despite enjoying highly subsidized education at premier institutes like the IITs and IIMs, the talented youth ends up being of little value to the nation’s development. It’s an investment gone waste. If this new policy of Trump can help India retain its skilled workforce in its own land, we can definitely turn India into a place better than the US!

H-1B visa impact on IT Sector

The following article is based on my own interpretation of the said events and/ or publicly available information. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Shivani Manchanda, MBA 2016-18, Vinod Gupta School of Management, IIT Kharagpur

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Information Technology Sector in India slumped by 4% after the U.S. administration proposed to renovate the H-1B work visa programme. This programme is widely used by all the Indian IT firms to send thousands of their employees to U.S. every year, now all the IT companies may have to change their business strategies as the new policy also include to double the minimum wage to $130,000 of the H-1B visa holder.

The wages are increased and it is being said that it is for the efficient hiring of talented and skilled people but as the Indian IT companies would not be able to pay this higher amount to their employees so this shows the inclination on the Trump’s campaign in one line “American jobs Americans only”. Now most of the Indian employees will be left with the offshore working and the opportunities to work onsite will reduce.

Tech centers established in U.S. are now planning to shift these in other countries as it will be difficult for them to hire people from other countries and they are also aware of the shortage of skilled workforce in U.S. like the shortage of data scientists.

Obviously this is not the best solution if the focus is really on hiring the skillful and capable employees for American companies because it is tumbling international opportunities and directly impacting the Information Technology sector of India.

Trump’s refugee ban-A sign of religious discrimination?

The following article is based on my own interpretation of the said events and/ or publicly available information. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Srishti Prasad, MBA 2016-18, Vinod Gupta School of Management, IIT Kharagpur

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The newly elected US President blocked immigration from seven Muslim countries with the intention to ban the entry of refugees. The ban suspends the United States’ Syrian refugee program, which accepted 12,486 Syrians in 2016.  It also gives preference to accepting Christian refugees from the Middle East over Muslim refugees. This has received huge criticism all over the world and many leading companies like Uber and Apple have expressed their disappointment. In fact, the acting US Attorney General Sally Yates also defied Mr Trump’s order. The President maintained that this move was “not a Muslim ban” and it was long overdue. The ultimate objective is the maintenance of national security

Chaos and anger prevailed at the airports where immigrants and refugees were stranded. They did not know where to go. This move will also impact India and the Indians working in the US. The former President, Barack Obama, criticized Trump’s move and stated that one should not be discriminated on the grounds of religion.

The question of the hour is what happens next. Opponents are planning to take a legal step against this. They are expected to argue that the blanket ban violates the Fifth Amendment right to due process. They will also put forth that the order’s preferential treatment of Christians over Muslims violates the first amendment on freedom of religion.

 

The New POTUS

The following article is based on my own interpretation of the said events and/ or publicly available information. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Irfan M A, MBA 2016-18, Vinod Gupta School of Management, IIT Kharagpur

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Trump’s entry into the mainstream politics as the president of the United States, the most powerful chair in the world, has been the most talked about topic these days. Holding a real estate conglomerate, Trump contested the elections through a Republican ticket and his run to the post was full of controversies. His statements regarding religious minorities, ethnic groups and women had irked many. These could be seen as a part of a well defined strategy to instil nationalism in the minds of the American people and has worked extremely well for his campaign. Although there were allegations that Russia has intervened in the election process aiding Trump, a couple of things which worked in his favour were his opponent Hilary Clinton’s leaked email controversy and the fact that she had nothing different from the usual set of politicians whom the people were fed up with. His maiden speech got many by the nerves, mainly Indian IT firms and businesses relying on export to US.

As the new president has taken over, there are many who are looking forward to his reigns favoring the American people on one side and the whole gamble of media and entrepreneurs keenly watching and adapting to his new policies on the other side. At this point in time, the only thing that we can say is that the show has just begun.

 

US-China Trade war – China’s defence strategy

The following article is based on my own interpretation of the said events and/ or publicly available information. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Ronak R Choksy, MBA 2016-18, Vinod Gupta School of Management, IIT Kharagpur

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With President Trump entering the White House, concerns over US – China trade war looms over the global economy. Currently, China is US’s largest trading partner and accounts for 21% (~ $350 billion) of US imports. If President Trump were to take the protectionist approach and impose a 35% – 45% tariffs over imported Chinese goods, China might retaliate with its own punitive trade actions. One of the ways in which China could react is by allowing its currency, the renminbi, to free float. In normal circumstances, if the renminbi is depreciating, the central bank would interfere and not allow the renminbi to drop by more than 4%. But People’s Bank of China might consider not interfering and letting their currency depreciate against the USD. This will in turn make the Chinese goods cheaper in the global markets, and this time China cannot be blamed of currency manipulation.

References

http://fortune.com/2016/12/22/donald-trump-china-trade-war

https://www.census.gov/foreign-trade/statistics/highlights/toppartners.html#imports

Trump Regime impact on Indian IT Industry

The following article is based on my own interpretation of the said events and/ or publicly available information. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

K Rohit Rao, MBA 2016-18, Vinod Gupta School of Management, IIT Kharagpur


Donald trump has finally taken the presidency oath to take charge of the world’s oldest democracy. From managing a multi-billion dollar business, Trump now sits in the seat of the world’s most powerful person. The 45th President of the United States, Trump is described as a crazy protectionist and strong nationalist. Trump has been fiercely pitching for protecting the American jobs against outsourcing.

Trump is strongly advocating against outsourcing and bring reforms in H1B visa system. This would have a direct impact on the Indian IT industry which depends on the US for almost 60% of its revenues. Outsourcing to Indian IT firms saves millions for the US companies and benefits the Indian IT industry. It is a win-win business but this has impacted the American job market for locals. Stricter H1B policies and reforms may force Indian companies to hire more locals which would trim their margins.

Trump considers himself as India’s fan and a true friend. Given the large contribution of the Indian IT industry to the US economy, most of Trump’s extreme thoughts are unlikely to see light of the day. Even Indian companies have moved forward to insulate themselves from any future uncertainties. Indian IT giants TCS, HCL, Infosys and Wipro have started building a strong brand image in the US and have involved themselves in a number of CSR initiatives. Only time will say, whether the way forward is tough for IT companies. But there is a dire need for Indian IT giants to reduce their over dependency on the US and chalk out strategies in the face of technological and political shifts.