UPSC Mains Current Affairs for 28 August 2025

H-1B Visa Debate 2025: US Criticism, Indian Impact & Trump’s Proposed Reforms

August 28, 2025

H-1B Visa Debate 2025 Latest News

Recently, US Commerce Secretary Howard Lutnick labelled the H-1B visa program a “scam,” arguing it allows foreign workers to take jobs that should go to Americans.
His remarks align with the Trump administration’s stance who oppose the program for allegedly undercutting domestic workers.
However, the H-1B continues to have strong supporters, including Elon Musk and Vivek Ramaswamy, who highlight its role in bringing global talent to the US.
The program remains particularly significant for Indians, who accounted for over 72% of approved H-1B petitions in 2023.

Overview of the H-1B Visa Program

The H-1B is a temporary, non-immigrant visa that enables US employers to hire foreign workers in specialized fields like technology, engineering, and finance.
Launched in 1990, it allows US employers to hire skilled foreign professionals in jobs requiring at least a bachelor’s degree.
It was designed to help businesses access skills unavailable in the domestic workforce by permitting temporary employment of qualified immigrants.
The visa can be granted for up to six years, after which holders must either leave the US for at least 12 months or obtain permanent residency (Green Card).

H-1B Visa Caps and Exemptions

Currently, there is an annual cap of 65,000 visas, with an additional 20,000 for individuals holding advanced degrees from US universities.
However, not all petitions fall under this cap — exemptions apply for continuing employment, higher education institutions, and nonprofit or government research organisations. As a result, approvals far exceed the cap.
In FY 2023, the US Citizenship and Immigration Services approved 118,948 initial employment petitions and 267,370 for continuing employment, totalling 3,86,318.

Immigration Politics and Criticism of H-1B Visas in the US

Immigration remains one of the most divisive issues in US politics, with concern over it rising sharply in recent years.
Trump’s campaign rhetoric has often targeted immigration, blaming it for job losses, wage stagnation, inflation, and economic distress faced by the working class.
While earlier criticism centred on low-skilled migrants, the H-1B visa program has now come under fire for allegedly displacing American workers from high-paying jobs.
This narrative, often intertwined with racial undertones, frames immigration as a threat to American livelihoods and fuels political attacks on skilled migration programs like H-1B.

Indians as the Largest Beneficiaries of H-1B

Since 2015, Indians have consistently accounted for over 70% of all H-1B visa approvals, far outnumbering Chinese applicants, who remain around 12–13%.
This dominance has made Indian professionals a focal point of criticism from nativist Republicans, who argue that the program allows Indians to take American jobs at lower wages.

Criticism of Wage Disparities

Opponents claim that US tech companies misuse the H-1B program to fill low-to-mid-level positions at salaries below what Americans would demand.
Supporting this narrative, data show that nearly 70% of Indian H-1B approvals in FY 2023 were for salaries under $100,000, compared to the US median IT salary of $104,420.
- Only 5% were for salaries above $150,000.

Defence of the Program

Despite criticism, industry leaders emphasize that H-1B visas remain essential for addressing the US skills gap.
They argue that wages are market-driven, and global competition for STEM talent is fierce.
With China (3.57 million) and India (2.55 million) producing far more STEM graduates than the US (820,000), Indian and Chinese professionals continue to dominate the high-skilled workforce.

Trump’s Proposed Overhaul of H-1B

Although details remain unclear, Trump and his allies have hinted at a major restructuring of the H-1B visa system.
A 2021 rule proposed under his administration offers insights into the possible direction of reforms.

Salary-Based Selection Rule

The 2021 proposal sought to prioritize H-1B petitions based on salary levels under the Occupational Employment Statistics (OES).
Higher-paid applicants (Level 3 and 4) would be favored over lower-paid ones (Level 1 and 2).
If implemented, such a change would heavily disadvantage early-career professionals, particularly international students who typically begin at Level 1 or 2 wage bands.
This aligns with Trump’s narrative of prioritizing “higher-value” workers while curbing low-wage immigration.

The “Golden Card” Project

In parallel, Trump has floated the idea of a “Golden Card,” offering residency and citizenship to wealthy investors contributing $1 million to businesses or $800,000 to rural or distressed areas.
The initiative has reportedly attracted 250,000 applicants, potentially generating up to $1.25 trillion in investments.

Source: IE | IE | ToI

H-1B Visa Debate 2025 FAQs

Q1: Why is the H-1B visa in the news in 2025?

Ans: US Commerce Secretary Howard Lutnick called the H-1B visa program a “scam,” echoing Trump-era criticisms that it undermines American workers.

Q2: What is the H-1B visa program?

Ans: Launched in 1990, the H-1B visa allows US employers to hire foreign professionals in specialised fields like technology, engineering, and finance for up to six years.

Q3: How many H-1B visas are issued annually?

Ans: The annual cap is 65,000 visas plus 20,000 for US advanced degree holders, but exemptions mean approvals often exceed 3.8 lakh annually.

Q4: Why are Indians central to the H-1B visa debate?

Ans: Indians account for over 70% of H-1B approvals since 2015, dominating the program and drawing criticism from US politicians concerned about job displacement.

Q5: What changes has Trump proposed for H-1B visas?

Ans: Trump suggested prioritising high-wage applicants through a salary-based selection rule, and floated a “Golden Card” residency program for wealthy investors.

Rare Quadruple Star System in Milky Way: Brown Dwarfs Orbiting Red Dwarfs Discovered

August 28, 2025

Quadruple Star System Latest News

A team of international scientists has identified an extremely rare quadruple star system in the Milky Way, named UPM J1040−3551 AabBab. The system features a pair of cold brown dwarfs orbiting two young red dwarf stars — a configuration never observed before.
The study was published in the Monthly Notices of the Royal Astronomical Society (September issue).
Scientists say this discovery is significant as it provides fresh insights into brown dwarfs, celestial objects that are notoriously hard to detect and study, helping improve understanding of their properties and role in stellar evolution.

Young Red Dwarf Stars

Young red dwarf stars are small, relatively cool stars in the early stages of their long lifetimes. They are the most common type of stars in the Milky Way.
High radiation: They are characterized by strong magnetic activity, leading to intense ultraviolet (UV) radiation and violent superflares, which can pose significant challenges to planetary atmospheres and life.
Size & Temperature: They are smaller and cooler than our Sun, with surface temperatures ranging from about 2,500°C to 4,000°C.
Longevity: Red dwarfs burn hydrogen fuel very slowly, allowing them to live for tens to hundreds of billions of years, far longer than stars like the Sun.
Youth factor: When they are young, red dwarfs are more active, often emitting intense stellar flares and strong radiation.
Importance in astronomy: Studying young red dwarfs helps scientists understand stellar evolution, the habitability of surrounding exoplanets, and how such stars influence planetary atmospheres.
Proximity to Earth: The nearest star to our Sun, Proxima Centauri, is a red dwarf, highlighting the abundance and significance of these stars in our galactic neighbourhood.

Brown Dwarfs: The “Failed Stars”

Brown dwarfs are unique celestial objects that form like stars from collapsing gas and dust but lack the mass to sustain hydrogen fusion, which powers normal stars.
This limitation makes them faint and cooler, earning them the nickname “failed stars.”
Despite this, they share characteristics with gas giants such as Jupiter and Saturn, having similar atmospheres filled with molecules like water vapor.
Brown dwarfs can be massive—reaching up to 70 times the mass of Jupiter—yet remain distinct from true stars, occupying the gap between planets and stars in the cosmic family.

Why Brown Dwarfs Are Hard to Detect

Brown dwarfs are extremely cold and faint, making them difficult to observe directly.
To study them, astronomers often track brown dwarfs that orbit brighter companion stars, since both objects are usually born together from the same material.
By analysing the brighter stars, scientists can estimate the age, temperature, and composition of the dimmer brown dwarfs.
The recent discovery of the quadruple star system UPM J1040−3551 AabBab is remarkable because it contains two T-type brown dwarfs, each about the size of Jupiter, orbiting two young red dwarf stars.
Such a configuration is exceptionally rare — the probability of a low-mass brown dwarf having a companion is less than 5%, making this finding a valuable opportunity to deepen our understanding of these elusive “failed stars.”

Importance of Studying Brown Dwarfs

Brown dwarfs help astronomers understand the processes behind star and planet formation, since they occupy the middle ground between the two.
Mapping their abundance and distribution also provides crucial insights into how mass is spread across the universe.
This is particularly significant because much of the universe’s mass remains unseen, existing as dark matter, and studying brown dwarfs offers valuable clues to this cosmic mystery.

Source: IE | ES

Quadruple Star System FAQs

Q1: What is UPM J1040−3551 AabBab?

Ans: It is a newly discovered rare quadruple star system in the Milky Way, featuring two brown dwarfs orbiting a pair of young red dwarf stars.

Q2: Why is this discovery significant?

Ans: The system’s unique configuration offers new insights into how stars and brown dwarfs form and evolve, helping astronomers study stellar and substellar properties.

Q3: What are young red dwarf stars?

Ans: They are small, cool, long-lived stars with surface temperatures of 2,500–4,000°C. Young ones emit strong UV radiation and stellar flares, impacting nearby planets.

Q4: Why are brown dwarfs called “failed stars”?

Ans: Brown dwarfs form like stars but lack sufficient mass to sustain hydrogen fusion, leaving them faint and cool, resembling massive gas giants.

Q5: Why are brown dwarfs hard to detect?

Ans: Their faintness makes them difficult to observe, so astronomers study them in binary or multiple systems with brighter stars that reveal their properties.

US Tariffs on Indian Exports: Challenges and Opportunities

August 28, 2025

US Tariffs Latest News

The US has imposed steep 50% tariffs on Indian exports since August 27, hitting key sectors like textiles, gems, and jewellery, and prompting calls for trade diversification.

Introduction

India is facing a significant external trade challenge as the United States has imposed steep 50% tariffs on Indian goods exports.
This development comes at a time when India’s export sector has grown increasingly reliant on the American market, which has remained the country’s largest trading partner for four consecutive years.
The tariffs have not only raised questions about India’s dependence on the US but have also triggered renewed debates on trade diversification, reforms, and the possibility of joining multilateral trade blocs.

Impact of US Tariffs on Indian Exports

The 50% tariff makes India’s labour-intensive and low-margin exports, such as textiles, gems, jewellery, shrimps, furniture, and carpets, uncompetitive in the American market.
Many small and medium exporters, particularly in hubs like Tirupur, Surat, and Noida, have already halted production due to falling demand and shrinking cost competitiveness.
Although exports to the US account for less than 2% of India’s GDP, the employment impact is disproportionately large, given that the affected sectors are among the most labour-intensive.
Competitors such as Vietnam, Bangladesh, and Cambodia are poised to benefit from India’s losses, as they currently face lower US tariffs.

India’s Overdependence on the US Market

The latest tariff action has exposed the risks of India’s growing reliance on a single export destination.
As of 2024, the US accounted for 18% of India’s exports, up from 11% in 2010. By contrast, China consciously reduced its dependence on the US by diversifying its export basket, with its share of exports to the US falling from 20% to 14% in the same period.
This concentration has given the US significant leverage over India’s trade policy.
Until now, Indian exporters enjoyed relatively smooth access to the US market, with average tariffs of just 4% and minimal non-tariff barriers.
That comfort discouraged India from aggressively pursuing alternative export destinations or multilateral trade agreements.

Policy Space for Reform and Diversification

The crisis has forced policymakers to reconsider three long-pending issues:
- Reducing dependence on the US market by aggressively pursuing trade with other regions, including Africa, Latin America, and Southeast Asia.
- Exploring multilateral trade deals, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), where key members like Japan, Australia, and ASEAN nations are supportive of India’s entry.
- Reframing India-US trade negotiations by highlighting the broader economic relationship. While the US claims a goods trade deficit, it actually enjoys a $40 billion overall surplus with India when revenues from digital services, education, financial activities, royalties, and defence are considered.

Domestic Measures to Cushion the Impact

In the short term, exporters have demanded that the government facilitate domestic procurement by large buyers such as the Indian Railways and public sector undertakings.
The Centre is also considering a relief package with cheaper credit, though the effectiveness of such measures remains uncertain without clarity on how long the tariffs will persist.

Positive Outcomes and Opportunities

Trade Reform Momentum: The tariffs could accelerate much-needed reforms in India’s trade structure, such as lowering tariffs on intermediate goods to make domestic industries more competitive.
Multilateral Leverage: India is better placed today to negotiate multilateral deals than during the RCEP talks, thanks to its greater willingness to adopt a “structured and balanced” approach to market access.
Diversification Push: With the US market becoming riskier, India is likely to expand its trade footprint in Europe, Africa, and Latin America, while also strengthening its presence in digital services and high-value manufacturing.

Source: IE

US Tariffs FAQs

Q1: What is the recent US tariff decision against India?

Ans: The US has imposed a steep 50% tariff on Indian goods exports, effective August 27, 2025.

Q2: Which Indian sectors are most affected by the tariffs?

Ans: Labour-intensive sectors like textiles, gems, jewellery, shrimps, carpets, and furniture are the hardest hit.

Q3: Why is India vulnerable to US tariff actions?

Ans: India relies heavily on the US market, which accounts for 18% of its exports, creating overdependence.

Q4: What options does India have to counterbalance the impact?

Ans: India can diversify exports, negotiate multilateral deals like CPTPP, and highlight the US’s overall trade surplus.

Q5: How could this tariff shock benefit India in the long run?

Ans: It could push India to reform its trade policy, diversify markets, and build resilience against external disruptions.