The Talent Dimension in India-US Trade Negotiations

India–US trade negotiations and the talent Dimension

1. Why Talent Matters in Trade Talks

Trade today is not just about goods like steel, aluminium, or agriculture. Services and knowledge-based industries dominate, and their backbone is skilled people. For India, skilled human capital — engineers, IT professionals, students, and entrepreneurs — is its most valuable export. Yet, India–US trade talks have mostly revolved around tariffs, leaving mobility of talent in the background.

2. Challenges for Indian Talent in the US

H-1B visa bottlenecks: Approvals for Indian IT firms have fallen sharply (2024 approvals were less than half of 2015 levels).

Student visa hurdles: Delays and unpredictability affect higher education aspirations.

Restrictive processes: The US increasingly uses administrative tools to limit skilled migration without passing new laws.

Impact on businesses: Indian IT companies, STEM graduates, and startups face operational setbacks due to these barriers.

3. Why Talent is a Trade Issue

Services trade depends on people: IT services, consulting, education, and research thrive only if professionals can move freely.

Value chain disruption: Limits on mobility affect not just individuals but also the global operations of firms.

Strategic factor: Talent flows are as important as capital flows in shaping modern economies.

4. What India Can Negotiate

Drawing lessons from the India–Australia Economic Cooperation and Trade Agreement (2022), India can push for:

✔ Mobility annex: Time-bound visa processing standards.

✔ Student-to-work bridge: Smooth transition from study visas to work permits.

✔ High-skill visa flexibility: Portability of jobs and multi-year, multiple-entry visas for intra-company transfers.

✔ Trusted employer track: Fast-tracking visas for vetted firms.

✔ Skills cooperation mechanism: Formal framework to support skills-based migration.

Additionally, India could seek:

• Mutual recognition of qualifications: Covering medical, IT, finance, and teaching professions.

• Inclusion of cultural professions: Such as yoga instructors, modeled on provisions in the India–Australia deal.

5. Possible Give-and-Take

In return for mobility concessions, India could:

• Expand access: In select goods sectors.

• Cooperate: On digital trade standards.

• Align regulations: In emerging technologies such as AI, critical minerals, and clean energy.

This would reframe talent mobility as a mutually beneficial bargain, not a unilateral demand.

Synopsis

India–US trade negotiations cannot remain limited to tariffs. Skilled mobility is central to the services economy, and its neglect weakens the potential of any trade pact. India should press for structured commitments on visas, recognition of qualifications, and cultural professions, drawing from models like the India–Australia deal. In return, India can offer market access in goods and tech cooperation. Recognising people as the drivers of trade will strengthen the resilience and depth of India–US economic relations.