The study supports the claim of the $108-billion Indian IT industry that its dependence on H1-B and L1 visas is due to the fact that there aren’t enough locals with capabilities in science, technology, engineering and maths (STEM).
According to the NFAP study, international students account for 70 per cent of the full-time graduate students (masters and doctorate) in electrical engineering, 63 per cent in computer science, 60 per cent in industrial engineering and about 50 per cent in economics, chemical engineering, materials engineering and mechanical engineering.
These students not only foster research and innovation at US universities, but also contribute as entrepreneurs. The study said about 40 per cent of immigrant entrepreneurs in recent venture capital-funded companies had first gone to the US as students, as stated by a National Venture Capital Association survey.
The NFAP study does not provide a break-up of the nationalities of international students. According to the Open Door 2012 survey by the Institute of International Education, China and India, followed by South Korea, are the top countries accounting for international higher education students in the US.
Americans not crowded out
NFAP also stated openness towards international students didn’t lead to crowding out American students. “The first priority is US citizens; we get as many who qualify as we can. I don’t think there is crowding-out. There is a lot of pressure to have more US citizens. We try for that. The reality is there are not enough to go around,” Ohio state professor Stuart Cooper said in the survey.
The study backs up claims of the Indian IT services industry that there aren’t enough STEM-qualified local graduates they can hire. “Even if I look at hiring locals in large numbers, they will be Indian students who pursue higher education in the US,” said a senior executive of a large Indian IT services company.
In a recent report by Offshore Insights, Sudin Apte, research director and chief executive of the company, said with 3.5 per cent technology unemployment and the limited number of local computer science graduates, it was difficult to meet the industry’s needs.
The Open Door 2012 study of international students in the US said 41 per cent pursued STEM courses. International students are crucial for some of the graduate programmes conducted at several US universities. For instance, the electrical engineering programme at the University of Iowa seems to be completely reliant on foreign nationals.
If the immigration Bill in the US is passed, it would Indian IT firms to increase local hiring. However, despite efforts, several major IT firms haven’t been able to hire students from colleges. Through the last four years, Tata Consultancy Services has recruited 500 college graduates across the US.
Openness to international students and US employment-based immigration policies are closely connected. Legislation pending in Congress would allow foreign graduate students in STEM fields to be sponsored without being subject to the current green card quota, or at least be given more priority than currently, the report said.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app