Jan 28, 2025 08:18 PM IST
Immigration remains a sensitive topic for nations as they navigate the complex balance between the internal imperatives of jobs, resources, identity, and culture
Donald Trump’s second term as president of the United States (US) marks a pivotal moment in global politics, with a reigning narrative that the world order has undergone a profound transformation. It may seem more apparent now, but the reality is that these shifts have been years in the making. In today’s fragmented world, globalisation has receded as nations prioritise advancing domestic agendas over a unified, interconnected global vision. Meanwhile, multilateral organisations that have long been the guardians of the global order find themselves at a crossroads and face an imperative to redefine their relevance.
Over the years, India and the US have significantly strengthened their strategic partnership across key sectors, leveraging platforms like Quad. The partnership between the two nations on the technology front extends beyond information and communication technology, to emerging fields like Artificial Intelligence (AI), cybersecurity, and semiconductors.. However, to stay ahead in a volatile global landscape, nations must craft value propositions for mutually beneficial partnerships. The following are key areas for strategic focus:
Distinguishing immigration from skilled labour mobility: Trump’s focus on restricting illegal immigration, including ending birthright citizenship, has assumed a more concrete form with his executive orders on the same. This move could impact nations such as Mexico that share borders with the US as well as India given many Indians continue to reside in the US, pursuing the American Dream.
Immigration remains a sensitive topic for nations as they navigate the complex balance between the internal imperatives of jobs, resources, identity, and culture. However, skilled labour mobility requires clear differentiation from immigration. With ageing demographics and talent shortages in several developed economies, businesses must access global talent to drive innovation. Just as Covid highlighted supply-chain resilience, today’s era emphasises strategic planning for the talent value chain.
Over the years, Indian technology companies have significantly expanded their localisation initiatives, hiring from US universities and collaborating with state governments to step up skilling programmes. While non-immigrant visas like H-1B address critical skill gaps and benefit both nations, most tech companies in India expect only marginal impact from potential changes. However, the Trump administration will do well to remember that the imperative of skilled labour mobility is intertwined with the future of innovation and should not be a victim of the immigration challenges.
The strategic imperatives of AI: Trump repealed a 2023 executive order requiring AI developers to report activities to the commerce department, originally aimed at mitigating AI risks to consumers, workers, and national security. While the US prioritises high-tech innovation with $500 billion in AI investments by players such as OpenAI, revoking this oversight measure raises misuse concerns. As a tech-forward nation, we have an opportunity to discuss both the vast potential and the unforeseen risks of AI. The absence of a unified approach could create challenges for companies operating in both countries, needing to navigate varied compliance regimes.
Sustainability and diversity, equity and inclusion (DEI): Technology does not operate in isolation, and the external environment, particularly, the climate crisis, poses significant challenges. The US withdrawal from the Paris Accord and Green New Deal undermines global climate efforts and poses challenges for committed nations such as India. As energy demands rise with digitalisation, the tech sector is vital to any sustainability effort.
An equally compelling discussion around DEI throws up the question: Has the emphasis on DEI as an organisational charter overshadowed efforts to truly embed equity and inclusion within a merit-based framework? Nations are shaped not just by policies but by the collective brainpower of their people. True progress requires going beyond quotas or reservations and actively fostering environments that empower equality. The tech industry, not just in India but across all economies, must prioritise inclusivity, enabling everyone to contribute, innovate, and thrive equally.
While there are uncertainties, an important consideration is the fact that the US market is at a bellwether stage. Businesses remain optimistic as jobs get created, the dollar strengthens, and foreign investments and stock markets hit new highs. For India, these trends signal a potential rise in tech spending after a few years of stagnation. India must strategically navigate the shifting US-led order by advancing AI, strengthening R&D, and fostering collaboration.
Rajesh Nambiar is president, NASSCOM. The views expressed are personal
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