A new study by the Manhattan Institute has revealed that Indian immigrants deliver the highest economic benefits to the United States, significantly reducing national debt while boosting GDP growth. The report, authored by economist Daniel Di Martino, comes at a time when President Donald Trump’s immigration policies are tightening, prompting discussions about the future of skilled migration from India.

Indians Lead in Economic Impact

According to the report, each Indian immigrant and their descendants save the US federal government about 1.7 million dollars over 30 years, which is far higher than any other immigrant group. The study also shows that every H‑1B visa holder increases the US GDP by nearly 500,000 dollars while cutting federal debt by around 2.3 million dollars during the same period. This fiscal contribution stems largely from high educational attainment, strong professional success, and comparatively low dependence on welfare programmes.

Over 70 per cent of H‑1B visas issued in 2024 were granted to Indian nationals, illustrating their prominence in America’s high‑tech and healthcare workforce.​

The study identifies Chinese and Filipino immigrants as the next biggest contributors, reducing debt by 800,000 and 600,000 dollars respectively. On the other hand, immigrants from El Salvador and Mexico add to the national debt by around 50,000 and 10,000 dollars each over three decades.​

Policy Changes Stir Debate

Despite the clear fiscal advantages, the Trump administration has implemented several measures restricting skilled immigration. Among them is a 100,000‑dollar fee on H‑1B visa applications, which the White House says will be used to fund domestic workforce training. Although existing visa holders are exempted, the move has sparked concern among industry leaders and Indian professionals who dominate this visa category.

The changes have already had side effects. Data show that new Indian student arrivals in the US dropped sharply this year, declining by over 44 per cent between August 2024 and August 2025. Meanwhile, the administration introduced a 15 per cent overall cap on international students, with a limit of 5 per cent per country. Analysts warn that such restrictions could reverse years of economic and academic collaboration between the two nations.​

Reactions from Business and Analysts

Following the report, Zoho founder Sridhar Vembu urged Indian professionals to return to India, saying the country “needs and welcomes” them. His remarks resonated with growing sentiments that Indian talent can achieve success domestically, especially with India’s booming digital economy. However, economists caution that curbing Indian immigration could harm the United States, as high‑skilled workers are key drivers of innovation and tax revenue.​

The Manhattan Institute report recommends replacing the H‑1B visa lottery with a wage‑based selection system to better reward skill and salary levels. It suggests that such reforms could reduce the US national debt by nearly 20 trillion dollars and raise the country’s GDP by 4.6 per cent over 30 years. Critics, however, argue that the study relies on optimistic projections about future spending and tax patterns. The debate continues as both Washington and New Delhi watch how policy decisions affect cross‑border talent flows.​

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