More modern immigration

Microsoft CEO's remarks on CAA should be a wake-up call

At a Microsoft event in New York City this week, Indian-born Satya Nadella, chief executive officer (CEO) of the software behemoth, caused some controversy when he appeared to call the new Citizenship Amendment Act (CAA) both “sad” and “bad”. There was a robust response on social media and elsewhere, which caused Microsoft’s India office to issue a statement reiterating and clarifying Mr Nadella’s point. Nothing was changed in its essentials. Mr Nadella had spoken in praise of his own experience as an immigrant in the US, and indicated that he wanted a similar situation for the land of his birth: “I would love to see a Bangladeshi immigrant who comes to India and creates the next unicorn or becomes the next CEO of Infosys, that should be the aspiration. If I had to sort of mirror what happened to me in the US, I hope that’s what happens in India.” 

Mr Nadella’s clarity of vision in this respect is praiseworthy. The India that he describes would be a country where people with ambition and aspiration are welcomed, but also where such ambition might conceivably be rewarded with success that boosts not just individual fortunes but also the economy more generally. A near universal conclusion among economists is that immigration, even low-skilled immigration, benefits a country’s economy. This is, of course, a current debate in the United States as well as in India, which is partly why Mr Nadella no doubt felt compelled to speak of his own experience. It is also why the current Indian mechanisms on migration, and the debate around it and the CAA, are fundamentally out of step with what is needed for the Indian economy and for any modern liberal democracy. There should certainly be no statist bureaucratic nightmare along the lines of the National Register of Citizens (NRC) in Assam. What is needed is a proper, up-to-date, religion-neutral, and efficient immigration system. There should be a path to citizenship for migrants; the possibility of temporary work permits; and less paperwork. Currently receiving Indian citizenship or work permits for those not eligible for an Overseas Citizen of India card is far too difficult. No country that hopes to be a global power and to attract talent from around the world can possibly continue with such antiquated systems. A global war for talent is on, as countries and cities across the world understand that the coming decades of economic growth will be built on innovation, entrepreneurship, and creativity. India cannot disadvantage itself in this race.

The government should also consider that even if it does not agree with Mr Nadella’s sentiments, they are widely shared by investors and businessmen across the world, including in India. A proper investment climate in any country requires social stability as a prerequisite. It should be amply clear by now that the CAA, the NRC, and other similar moves by the government on the social policy front harm social stability and could have significant economic consequences. Both Mr Nadella and others in a similar position would want the government to think more carefully about the long-term impact of such actions.