Study shows Indian immigrants key to US economy, H-1B vital for growth

A new study by the Manhattan Institute reveals that Indian immigrants are the most beneficial for the United States economy. According to the study, published by Daniel Di Martino, each Indian immigrant reduces the national debt by more than $1.6 million over 30 years and boosts gross domestic product (GDP) more than any other group.

 

Indians are followed by Chinese immigrants, who lower the debt by over $800,000 per person, followed by Filipinos at $600,000, the study said. Colombians and Venezuelans also contribute positively, reducing the debt by $500,000 and $400,000, respectively.

 

On the other hand, some groups add to the debt. Salvadorans increase it by over $50,000 per person, while Mexicans, the largest immigrant group in the US, add about $10,000 each over 30 years.

 

The findings come amid the Trump administration’s tougher stance on immigration, including stricter restrictions and a one-time $100,000 fee for H-1B visas meant for skilled workers.

 

Ending H-1B visa would hurt US economy

 

The study also stated the impact of ending the H-1B visa program, which allows US employers to hire up to 85,000 skilled, college-educated immigrants each year for up to six years. 

 

Ending the program would hurt the economy and increase the national debt. Over 10 years, it could add $185 billion to the debt and reduce economic output by $26 billion. Over 30 years, the debt could rise by $4 trillion and the economy shrink by $55 billion, the study revealed. Around 120,000 new H-1B visas are issued annually.

 

The US population would not change much because these immigrants have low birth rates and often return to their home countries, but the debt-to-GDP ratio would rise by 0.5 per cent in 10 years and 4.8 per cent in 30 years. This restriction would have the largest negative impact of any single immigration policy, mainly because the US would lose the taxes paid by these skilled workers. 

 

Removing per-country limits to have negative impact

 

The most negative change for the US budget would be removing the per-country limits on employment-based green cards, adding that no more than 7 per cent of these green cards can go to immigrants from any single country. Indian immigrants often wait decades for a green card, while immigrants from other countries can get one in about two years, the study noted.

 

If the limits were removed, more green cards would go to Indians already in the US, but new Indian immigrants would still wait over 30 years. Immigrants from other countries would face much longer waits, dropping high-skilled immigration overall. This change could increase the national debt by over $1.1 trillion in 30 years, shrink the economy by 0.7 per cent, and raise the debt-to-GDP ratio by 2.4 per cent.