Jeffrey Sachs Criticises US Immigration Curbs, Warns of Economic Volatility in India-US Ties

New Delhi: Renowned economist Jeffrey D. Sachs has criticised the United States' tightening of employment-based immigration pathways, warning that the move reflects a broader retreat from openness that could undermine American technological leadership while creating opportunities for India to strengthen its domestic innovation ecosystem.

In an interview with Republic, Sachs described the reported suspension of the PERM employment-based green-card pathway for major technology companies, including Microsoft, Adobe, Infosys, TCS, Wipro, HCL and Cognizant, as a symptom of what he called a deeper political crisis in the United States.

He argued that the restrictions reflect growing resistance to immigration and international competition, rather than a carefully considered labour-market policy.

“America's technological leadership was built in large part by immigrants,” Sachs said, pointing to the contribution of foreign-born professionals to the country's technology industry.

Immigration Restrictions Could Benefit India

Sachs maintained that the immediate impact on Indian IT companies could be limited, given the substantial backlog in employment-based green-card applications for Indian nationals and the growing practice of Indian technology firms hiring locally in the United States.

However, he warned that the longer-term consequences could be more significant, particularly for talented Indian engineers, scientists and entrepreneurs who may increasingly reconsider their prospects in America.

According to Sachs, restrictive immigration policies could encourage more skilled professionals to remain in India and contribute to its domestic technology and research capabilities.

He argued that this shift could ultimately strengthen India by encouraging the development of homegrown solutions, businesses and innovation ecosystems.

Sachs said the future India-US technology relationship should increasingly be based on a partnership between two strong technological economies, rather than a one-way movement of talent from India to the United States.

Sachs Warns of Greater Volatility in India-US Economic Ties

On the broader implications for bilateral economic relations, Sachs said the recent US actions should not be interpreted solely as measures directed against India. Instead, he described them as part of a wider shift towards restrictions on immigration, universities and trade partners.

Nevertheless, he pointed to US tariff pressures on India, proposed higher fees for H-1B visa applicants and restrictions affecting employment-based green-card sponsorship as signs of increasing uncertainty in Washington's economic policy.

“The US is not a reliable partner,” Sachs said, arguing that the administration's approach was increasingly erratic and driven by narrow interests.

He cautioned that India should prepare for further volatility in the months ahead while avoiding an unnecessarily confrontational response.

Sachs called on New Delhi to maintain constructive relations with Washington while diversifying its international partnerships, including through stronger engagement with China, other BRICS members, ASEAN, the Gulf, Africa and Europe.

He also emphasised the need for sustained investment in high-quality education, scientific research, digital infrastructure and India's own technological capabilities.

Expressing confidence in India's long-term economic prospects, Sachs said the country should approach its rise as a major economic power with confidence and avoid becoming dependent on any single international partner.

Musk's Starlink Criticism Draws Sharp Response

Sachs also criticised Elon Musk's public remarks over delays in approving Starlink's operations in India, describing the billionaire entrepreneur's intervention as an attempt to advance his company's commercial interests through public pressure.

Musk's reported characterisation of the delay as “a crime against the people of India” was, in Sachs's assessment, an example of lobbying rather than serious policy analysis.

He stressed that satellite communications involve strategic infrastructure, national security and sovereignty, making regulatory scrutiny both legitimate and necessary.

Sachs said India was entitled to conduct its security review on its own timetable and establish the conditions under which foreign satellite communications providers could operate.

He also suggested that public criticism by a prominent foreign business figure could make it politically more difficult for the Indian government to be seen as yielding to external pressure.

Call for an Indian Satellite Broadband Ecosystem

Beyond the immediate Starlink controversy, Sachs argued that India should accelerate efforts to develop its own satellite broadband capabilities, drawing on the country's established space programme and expanding private space sector.

He highlighted the capabilities of the Indian Space Research Organisation (ISRO) and NewSpace India Limited (NSIL), calling for an indigenous system supported by multiple Indian operators.

In his view, building domestic satellite connectivity capabilities would help India protect its digital sovereignty and reduce dependence on foreign companies for strategically important communications infrastructure.

Sachs did not rule out a role for foreign providers, but maintained that their participation should take place within India's regulatory framework and should not come at the expense of domestic technological development.

Strategic Autonomy at the Centre of India's Response

Taken together, Sachs's remarks point to a broader argument: India should respond to growing uncertainty in US policy not by abandoning engagement with Washington, but by strengthening its economic resilience and strategic autonomy.

From skilled immigration and technology investment to trade relations and satellite communications, he argued that India's long-term interests would be best served by expanding domestic capabilities while building a wider network of international partnerships.

His assessment places India's technology ambitions at the centre of an evolving global economic landscape, in which talent, digital infrastructure and control over critical technologies are becoming increasingly important to national power.

For India, Sachs's message is clear: maintain engagement with the United States, but build the domestic strength and diversified partnerships needed to navigate an increasingly uncertain global environment.

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