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What is the News?
The United States has unveiled the ambitious America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength (COMPETES) Act, 2022.
What is the COMPETES Act, 2022?
Aim: a) To open up new vistas for talented individuals from across the world with a new start-up visa and b) To make the supply chains stronger and reinvigorate the innovation engine of the country’s economy to outcompete China and the rest of the world for decades to come.
What are the key provisions of the COMPETES Act,2022?
Firstly, it allocated grants and loans to encourage semiconductor production in the US and to improve supply chain resilience and manufacturing.
Secondly, it proposes funding to address social and economic inequality, climate change and immigration. For example, it offers an exemption for STEM (science, technology, engineering or mathematics) PhDs from the green card limit.
Thirdly, it has allocated USD 600 million a year to build manufacturing facilities to make the United States less dependent on solar components manufactured in Xinjiang, China.
Fourthly, it proposes a new category of visa called the “W” classification. This visa will be for non-immigrant entrepreneurs with an ownership interest in a start-up entity, essential employees of a start-up entity and their spouses and children.
What is the significance of the COMPETES Act for India?
This Act would create more opportunities in the US for Indian talent and skilled workers. Usually, Indians and Indian companies corner the lion’s share of H-1B work permits issued every year. With this new category, Indian professionals will likely have a better shot at opportunities.
Source: This post is based on the article ‘Explained: The America COMPETES Act, and how it could increase opportunities for Indians in the US’ published in Indian Express on 28th January 2022.
