A Unique Way of Learning Vocabulary from Leading Newspaper (THE HINDU)

Infosys, trumped: Case for free trade must not be given up

As IT companies adapt to new visa regimes, the case for free trade must not be given up

Infosys’s decision to hire 10,000 local workers in the U.S. has caused concerns over the impact of President Donald Trump’s restrictive visa policy for skilled workers. Explaining the move, Infosys CEO Vishal Sikka said it is purely a business decision focussed on building the company’s capabilities in fields such as artificial intelligence and cloud computing. Indian IT companies have been under pressure to adapt nimbly to the restrictive visa regimes being put in place not just in the U.S. but also in key markets such as the U.K. and Australia. As a matter of fact, these companies had been gearing up to become visa-independent even before Mr. Trump’s rise to power. In 2015-16, for instance, Infosys hired 2,144 people in the Americas, increasing its workforce in the region by over a quarter. In 2016, Tata Consultancy Services, another IT giant, made only about 4,000 U.S. visa applications, compared to about 14,000 a year before. The trend is likely to only strengthen. Not surprisingly, there is now increasing speculation that many Indian IT giants will refrain from sponsoring H-1B visas for junior engineers. The exact impact of Mr. Trump’s immigration stance on overseas hiring is difficult to gauge. Going by the numbers, the plan to hire 10,000 local employees looks significant compared to Infosys’s current foreign workforce in the U.S., which is estimated to be in the range of 20,000 to 30,000.

Yet, while individual companies adapt to the new political economy in the West, it does not diminish New Delhi’s responsibility to make a case for more open immigration policies for India’s skilled workers. The economic rationale behind the free movement of labour is that it promotes economic efficiency. This, as economists from David Ricardo to Jagdish Bhagwati have pointed out, increases the size of global economic output despite the costs. It is obvious that the tightening of immigration is likely to have a net negative effect on the global economy. Also, investment in advanced technologies itself, such as by Infosys, could be a measure to deal with high labour costs in the U.S. Artificial intelligence has already helped IT companies cut labour costs. In any case, job losses owing to automation are likely to accelerate, which is of course not an issue that affects the IT sector alone. While putting forward the argument that they create thousands of American jobs makes business sense for companies such as Infosys in their most critical market, it runs the risk of bolstering the narrative against the free movement of labour across borders. Sadly, since the benefits of globalisation are diffused among billions of people while its costs are concentrated on a smaller but organised group, such adjustments often end up validating populist, protectionist policies. 

IMPORTANT WORDS FROM ARTICLE & THEIR MEANING

1) Nimbly (तीव्रता से अदल) - Nimb-lee

Meaning - in a nimble way - Adverb
Synonyms - gracefully, rapidly
Example - Sabrina jumped nimbly out of the van.

2) Regimes (शासनों) - Re-jime-esMeaning - a government, especially an authoritarian one - Nouna system or ordered way of doing things - Noun
Synonyms - administration, management
Example - Women's magazines regularly feature diets and exercise regimes.

3) Speculation (सट्टा) - Spec-u-lay-tionMeaning - the forming of a theory or conjecture without firm evidence - Noun
Synonyms - belief, opinion
Antonyms - reality, truth
Example - As a scientist, I do not deal in speculation.

4) Refrain (बचना) - Re-fray-nMeaning - stop oneself from doing something - Verb
Synonyms - burden, theme
Antonyms - silence
Example - We must refrain from spitting in public places.

5) Gauge (अनुमान) - Gae-ageMeaning - an instrument that measures and gives a visual display of the amount, level, or contents of something - Nounestimate or determine the amount, level, or volume of - Verb
Synonyms - benchmark, basis
Antonyms - extreme, estimate
Example - The petrol gauge is still on full.

6) Rationale (तर्क) - Ration-lMeaning - a set of reasons or a logical basis for a course of action or belief - Noun
Synonyms - excuse, motive
Antonyms - proof, reality
Example - The plan was criticized for its lack of rationale.

7) Automation (स्वचालन) - Auto-may-tionMeaning - the use or introduction of automatic equipment in a manufacturing or other process or facility - Noun
Synonyms - industrialization, mechanization
Example - This factory has phased in new machinery for increased automation.

8) Juggernaut (प्रलयकारी शक्ति) - Jugger-not

Meaning - a huge, powerful, and overwhelming force - Noun
Example (English) - People round the world look at the US and see a powerful, war-hungry juggernaut.
Example (Hindi) - विश्व में हर तरफ लोग अमरीका की ओर देखते हैं और उन्हें एक जबरदस्त रण-पिपासु प्रलयकारी शक्ति दिखाई देती है।

Now considering the article above as a Reading Comprehension question, try to answer the following -

• Is sudden hiring by Infosys can be a cause for concern?
• What does the term "The economic rationale behind the free movement of labour is that it promotes economic efficiency" represents?

Given below are some words to check your vocabulary you can make sentences with those words in the comment section which will be reviewed by us.

• Instance
• Giants
• Efficiency
• Accelerate