Context: Recently, the US has amended its H-1B visa regime to give priority to higher wages and skills. 
What are the New Rules?

• According to the amended rules, US Citizenship and Immigration Services(USCIS) will first select registrations where the proffered wage equals or exceeds the prevailing level in that area of employment.
• Until now, the selection of H-1B work visas was done by a randomised lottery system, which did not take into account factors such as wage, experience or any other requirements and demands.
• Impact of New Rules: It could impact US tech companies looking to hire from the pool of H-1B visa workers as they are skilled and available for lower salaries. Indian companies are also likely to be hit and may have to shell out more salary for on-site workers.

About

• H-1B cap visas would be allocated according to wage levels, giving priority to those earning the highest salaries in their respective occupations and geographic areas of employment.
• The new rules will be effective 60 days after publication in the federal register and they will cover H-1B applicants for the new fiscal year starting April 1.
• Modifying the H-1B cap selection process will incentivise employers to offer higher salaries, and/or petition for higher-skilled positions, and establish a more certain path for businesses to achieve personnel needs and remain globally competitive 
• This rule will increase the chance of employment at the higher wage levels and thus may facilitate the selection of the best and brightest students for cap-subject H-1B status.

Impact on the US economy

• It could impact US tech companies looking to hire from the pool of H-1B visa workers as they are skilled and available for lower salaries.
• This move would adversely impact the health sector which is significantly dependent on immigrant medical professionals.
• This change will  negatively affect the potential of some colleges and universities to recruit international students.

How does this affect India’s Interest?

• It will help India retain high-skilled workers planning to go to the US.
• As the employment rate in India is rising, and these highly-skilled resources could directly contribute to boosting the Indian economy.

What is an H1-B visa?

• It is a non-immigrant visa given by the US to employ skilled workers from other countries for various specialised fields of occupation for a certain period of time.
• They are generally approved for three years, after which holders often change employers and continue working for other companies based in the US. 
• The biggest beneficiaries of H-1B visas are Indians, followed by the Chinese. 
• For example, as of April 1, 2020, the USCIS had received about 2.5 lakh H-1B work visa applications Indians had applied for 1.84 lakh or 67 percent of these visas.

Present Status of Providing H-1B Visa 

• The selection of H-1B work visas was done by a randomised lottery system, which did not take into account factors such as wage, experience or any other requirements and demands.