The west has witnessed a slower economic growth in recent times shrinking

The west has witnessed a slower economic growth in

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Economic Times. The west has witnessed a slower economic growth in recent times, shrinking career opportunities. On the other hand, India is a dynamic market with better job prospects. Also remunerations offered by Indian companies are more competitive than earlier. Taking cognizance of better opportunities in India, about 50 young Indian scientists gathered at the Massachusetts Institute of Technology last October to discuss ways for getting the best of minds back to India. Mallikharjuna Rao Komarneni, who came to the US in 2008 to do his PhD at the North Dakota University said with the better research opportunities in India and improvement in the environment to conduct scientific research, he aspires to return to India. Finance Minister Arun Jaitley said in Washington this week that compared to the rest of the world, the Indian economy was growing much faster and, in fact, the fastest. “At 7.5% growth rate any other country in the world would be celebrating but it is a tribute to India's growth story that at this rate "we are still impatient because we know that our potential is to do distinctively better", he said.
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India Link: H-1B The cap helps keep workers in India—empirically drives development of its tech sector Gaurav Khanna , University of California, San Diego and Nicolas Morales, University of Michigan, “The IT Boom and Other Unintended Consequences of Chasing the American Dream,” WORKING PAPER n. 460, Center for Global Development, 8— 17 , p. 2. CS wages in the US are many times higher than in India , and a significant fraction of Indian born CS workers are employed in the US (Figure 1f and Clemens (2013)). Given this large wage differential and a non-trivial probability of migrating to the US, many more Indian students started enrolling in engineering schools (Figure 2a). However, the number of available H-1B visas was capped, so a large number of Indian workers that would have preferred to work in the US, had to seek employment in India. Furthermore, since H-1Bs expire after 3 to 6 years, many of these workers returned to India, bringing with them their accumulated human capital, technological knowhow and connections, facilitating further technological diffusion (Kerr, 2008). This educated workforce in India enabled the Indian IT sector to grow rapidly, with new firms joining the race and older firms expanding, and over time, India became a major producer of software eroding the US dominance in IT exports (Figure 2b and 2c). This boom missed many other countries but settled on India. India has not only historically had high quality engineering schools that train potentially lower-wage, English-speaking workers but had also developed strong networks with the US sector during the earlier hardware boom (Arora et al., 2001; Bhatnagar, 2005).
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