Amid the backlash against Indian H-1B visa holders in the United States and the ongoing debate over the programme, a report by policy think tank Research and Information System for Developing Countries (RIS) has suggested that there was an inordinately high reliance on H-1B visas as a tool for service delivery and that India should increase its focus on professional services and Maintenance, Repair and Overhaul (MROs) services.

The report also stated that India is well entrenched in the services sector in the US, but should explore a comprehensive new institutional framework to address the multiple issues that arise from trade, investment, technology and finance linkages.

It also said that despite the US economy performing robustly, the trade deficit would remain a priority concern for the incoming Donald Trump administration.

The report was published after the RIS hosted a briefing session on ‘Trade, Tariff and Trump’ on December 31, 2024, addressing the anticipated economic and trade implications of the incoming Trump 2.0 administration.

“Despite the US economy performing robustly – exhibiting a GDP growth rate improving from 1.9 per cent in 2022 to an expected 2.7 per cent-2.8 per cent in 2024 – the trade deficit would remain a priority concern for the incoming Trump administration," the report stated.