Moneycontrol Pro Panorama | Is the American dream souring for Indians?

Donald Trump’s decision disappointed the Indian diaspora in the US.

Dear Reader,

For decades, the Third World looked at the United States as the promised land of opportunities, a place that lured the middle class with its riches. It remained a pathway for their one big shot in life to make their fortunes.

This ideal, often referred to as the "American Dream," has drawn millions of immigrants to its shores, including a significant number of Indians. From thriving in the technology sector to excelling in medicine, finance, and academia, Indian immigrants have long been a success story in America.

All that may be changing or, truth be told, may have changed already.

One of the first executive decisions by the second-term US President Donald J Trump is to end the birth right for US citizenship, a move that could significantly impact millions of immigrants, particularly within the Indian-American community.

The order seeks to eliminate the automatic citizenship granted to children born in the US to non-citizen parents, marking a major shift in US immigration policy. To quote Trump’s own words, “We’re going to end that because it’s ridiculous.”

That statement come as a major jolt to millions of Indian immigrants, waiting for their US citizenship. It means, once the temporary vias expire, they may have to pack and return to the homeland and, perhaps, give up the fascinating American dream forever.

According to the US Census, over 4.8 million Indian-Americans are living in the US, with a significant proportion born in the country. Once the policy is rolled out, children born to Indian nationals on temporary work visas, such as H-1B or those waiting for green cards, would no longer automatically gain US citizenship.

A big deal for Indians

One of the primary reasons for this perceived souring is the increasingly complex and uncertain immigration process in the United States. The H-1B visa, which has been a cornerstone for skilled Indian workers seeking employment in the U.S., has faced growing scrutiny and restrictions over the years. Lengthy wait times for green cards, particularly for Indians due to country-specific quotas, exacerbate the issue. Many highly skilled professionals find themselves stuck in a state of limbo, unable to secure permanent residency despite years of contributing to the U.S. economy. This prolonged uncertainty not only causes personal stress but also limits their ability to make long-term plans, such as buying a home or investing in their children’s education.

Does that mean that the US will not be a favourite destination for the Indian techies, finance, or healthcare professionals?

Not really.

Despite the Trump order, the “New World” remains the most hospitable, high-income, and prestigious destination for Indian immigrants. Many Indians would still want their children to “settle” in US. Europe and the Middle East still lags America when it comes to social acceptability, pay parity and the elite social class the average middle class would aspire to assimilate with.

No doubt, Indians would still want to be in the ’American camp’.

But there’s more…

Trump’s shocker followed India’s reported decision to take back some 18,000 illegal Indian migrants in the US to be sent back home. This is probably a move to appease the Trump administration, pre-empting further setbacks. The H1B Visas may continue, and Indians may continue to fly 8000 odd miles to seek a better life for posterity.

Trump’s decision disappointed the Indian diaspora in the US, who hoped the camaraderie between Trump and India—exemplified by his and Modi’s state visits and Indian immigrants’ contributions to the U.S. economy—would translate into friendlier citizenship policies. Yet Trump has proven that his priority is fundamentally about U.S. interests and, in his words, “making America great again.”

Even as the birth right fir US citizenship is ending, Trump has presented a balanced view of the H1B Visa programme saying he likes "very competent people" coming into the country and noted that he is not just talking about engineers, but also about people at all levels.

The US needs migrants as well!

Trump’s seemingly lenient views on the H1B Visa programme shouldn’t be seen as an act of generosity but probably a result of the realisation that immigrants are and have always been key to build the US economy. Some prominent names in the Trump camp are Indians--Vivek Ramaswamy, Kash Patel, Sriram Krishnan, Usha Vance and Jay Bhattacharya to name a few.

The fact is that Trump cannot afford to shut out immigrants—they have played a key role in building the American economy. Immigrants make up over 19 percent of the US workforce as of June 2024 — over 32 million out of a total of 169 million — and participate in the labour force at a higher rate than native-born workers, according to data from the Bureau of Labor Statistics (BLS). Antagonising the immigrant community, especially Indians, will prove costly to the Trump administration.

Yet, a wake-up call for Indians

However, the Trump move is a wakeup call for Indians to look at options other than the US for furthering their career and life prospects.

While the US has historically celebrated its immigrant roots, political rhetoric and public attitudes have sometimes created a less welcoming environment for newcomers. Incidents of racial bias and violence have also raised concerns among Indian immigrants about safety and acceptance in American society. These factors contribute to a growing sense of disillusionment, especially among those who once viewed the U.S. as a haven of inclusivity and opportunity.

Also, one cannot ignore the fact that the US is not as unequivocally favourable a destination as it once was. The rising cost of living in major cities, coupled with stagnant wage growth in some sectors, has made it increasingly difficult for immigrants to achieve financial stability.

This is particularly true for those in middle-income jobs or those who arrive with substantial student loan debt from pursuing advanced degrees in the U.S. While some Indian professionals continue to thrive, the path to financial success has become more challenging and uncertain for many.

Look East!

Going ahead, Indians must pay attention to the changing global dynamics. Opportunities in India and other countries are becoming more competitive and attractive. India’s growing economy and expanding tech and startup ecosystems provide viable alternatives for skilled professionals. Cities like Bengaluru and Hyderabad are emerging as hubs of innovation, offering lucrative careers without the cultural and logistical hurdles of immigration.

Additionally, countries like Canada and Australia have adopted more immigrant-friendly policies, making them increasingly popular destinations for Indian talent.

The US still holds immense potential, but its once-unquestionable allure is now being viewed through a more pragmatic lens.

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Dinesh Unnikrishnan Moneycontrol Pro