The US has long been an attractive destination for Indian students and investors. Indian citizens have been moving there in large numbers to take advantage of the US education system and opportunities. However, in recent years, the visa and green card process for Indians in the US has become increasingly difficult. The reduction in green cards, cuts in EB-5 visas and changes in immigration policies have put Indian students and investors in new troubles.
The US Green Card and EB-5 Visa: An Introduction
What is a Green Card?
The US Green Card is a document that allows the holder to live and work in the US permanently. It is different from a visa, as it gives the right to indefinite permanence. Many Indians take up jobs in the US under H-1B visas or other temporary work visas to obtain a Green Card, which further gives them a chance to obtain permanent residency.
What is an EB-5 Visa?
The EB-5 visa is a type of investment visa granted to foreign nationals who invest a minimum of $800,000 in the US and qualify for a Green Card in return. This visa program is specifically for wealthy foreign investors who invest to create employment opportunities in the US. Indian nationals have invested in large numbers under this program, and have become the second largest country to receive EB-5 visas after China.
Reasons for the Shortage of Green Cards for Indians
- Waiting List Problem
Indian nationals face long waiting lists to receive Green Cards. Due to the high number of Indian nationals holding H-1B visas, the demand for Green Cards is very high, while the Green Card quota for each country is limited. The US sets a certain number of Green Cards to be awarded to different countries every year, and in the case of India, the applications exceed this quota. This makes thousands of Indians wait for years, and in some cases the wait can be 10-15 years or more.
- Country-wise quota system
The green card process in the US is based on a “country quota system” where an equal number of green cards are allotted to applicants from each country, regardless of the number of applicants from that country. Countries like India and China have a high number of green card applicants, while other countries have fewer applications. This makes the waiting period for a green card very long for Indians.
- Changes in political and immigration policies
There have been changes in US immigration policies in recent years. The visa and green card process has become more difficult than before, especially since the strict policies on immigration were adopted during the reign of Donald Trump. Although Joe Biden’s government has made some changes, the complexities of the green card process still remain. The stringent changes and uncertainty in visa and green card rules have made it even more difficult for Indians to obtain a green card.
- Dependence on H-1B visa
A large portion of Indians in the US are H-1B visa holders, who work for US companies in technical and engineering fields. The H-1B visa is a temporary work visa, but it opens the way to obtain a green card. The problem is that the number of H-1B visa holders is quite high, but the number of green cards available to grant them permanent residence is extremely limited. Due to this, there is a shortage and delay in the issuance of green cards.
22% cut in EB-5 visas: A blow to Indian investors
What is the reason for the cut in EB-5 visas?
A recent report revealed that EB-5 visas for Indian investors have been cut by 22%. This cut will be in effect from October 10, 2023 to May 31, 2024. During this period, Indian citizens will be allotted 22% fewer EB-5 visas than citizens of China. This cut can be due to several reasons:
- Increasing demand for EB-5 visas
After China, India is the second largest country for EB-5 visas, and a large number of investors from there want to move to the US under this visa. The increased demand for EB-5 visas made the US feel that they should introduce new quotas or limits for this visa.
- Strict policy on immigration
The US immigration policy has tightened in recent years. During Donald Trump’s tenure, strict rules were imposed, especially on immigration issues. Although Joe Biden’s government has improved these policies in some cases, the US still maintains strict rules on immigration.
- Increase in financial requirements
In 2022, the minimum investment limit for EB-5 visas was increased from $500,000 to $800,000. This made this visa program even more difficult for small investors. Indian investors, many of whom come from the middle class and upper middle class, may be affected due to this new financial limit.
Its impact on Indian investors
The 22% cut in EB-5 visas is a big blow to Indian investors. Investors who were hoping to obtain permanent residency in the US by spending crores of rupees may now face more difficulty. This cut will not only delay obtaining a green card but will also harm investors who invested in the US for their business or livelihood.
Studying in the US and challenges of foreign students
- Delay in F-1 visa process
The F-1 visa, which is issued to international students to study in the US, is highly popular among Indian students. However, in recent years Indian students have been facing difficulties due to delays in the visa process and complexities of the rules. Long waiting times for visa interviews, increased visa rejection rates, and uncertainty following the Corona pandemic have affected the plans of many students.
- Competition in OPT and STEM fields
After studying in the US, students get the opportunity to work under Optional Practical Training (OPT). The number of Indian students is high especially in STEM (Science, Technology, Engineering, Mathematics) fields, but now competition has increased in these fields as well. This is leading to a decrease in employment opportunities and difficulty in visa extension.
- Challenge of H-1B visa
The H-1B visa is an important work visa for students after studies. A large number of Indian students work under this visa, but due to the limited number of H-1B visas and the lottery system for it, not every student is able to avail it. Many students, who hope to work in American companies, face hurdles in the process of getting this visa.
US education system: still a center of attraction
Despite the difficulties, the education system of America is still among the top in the world and is a major attraction for Indian students. American universities provide high quality education, research and networking opportunities. Many Indian students are impressed by the American education system and take advantage of the education and opportunities there.
