US EB-5 Program: Visa Issuance to Indians Declines by 22%

The US EB-5 visa program, which offers a pathway to US green cards and eventually permanent citizenship, has garnered significant interest from Indian investors. Despite an overall increase in EB-5 visas issued during the last eight months, Indian investors received a significantly lower number of visas.

Between October 1, 2023, and May 31, 2024, a total of 7,173 EB-5 visas were issued through consular processing, representing a 42% year-over-year growth compared to the same period in FY2023. However, Indian investors received only 512 EB-5 visas during this period, marking a 22% decline year-over-year.

The monthly visa issuance to Indian applicants at the US Consulate in Mumbai, India, showed a decline in productivity, processing only 50-60 visas per month and issuing only 4 EB-5 visas in May. This decline is concerning, as Indian investors have traditionally been a significant group of EB-5 applicants.

Interestingly, data from the Department of State (DOS) reveals that 120 Indian applicants (or 23%) who received their EB-5 visas in FY2024 reside outside India. This suggests that Indian investors are not the only ones affected by the decline in visa issuance.

The monthly visa issuance statistics for May 2024 show that 1,222 EB-5 visas were issued via consular processing, the second-highest monthly visa issuance volume so far in FY2024. This increase in visa issuance is largely due to the increased productivity of visa processing at the consular offices in Guangzhou and Ho Chi Minh City, as well as the faster adjudication of I-485 adjustment of status applications at USCIS.

It is worth noting that applicants from China, Vietnam, India, Taiwan, and South Korea continue to represent the largest investor groups receiving EB-5 visas in FY2024, collectively accounting for nearly 92% of all EB-5 visa issuances in the first eight months of the current fiscal year. Chinese applicants have been the largest group, with over 61% of the EB-5 visas issued so far in FY2024, followed by Vietnamese applicants with nearly 19%.

The US Consular Office in Guangzhou, China, has handled over 58% of the EB-5 visa issuance, while the Ho Chi Minh City Consular Office has processed over 19% of the visas. The data also shows that more than 64.7% of the total Unreserved EB-5 visas available in FY2024 have been used through May 2024, with at least 9,160 visas used through adjustment of status at USCIS.

Overall, the decline in EB-5 visa issuance to Indian applicants is a significant development in the US EB-5 program. As Indian investors continue to seek opportunities in the US, it will be important to monitor the trends and developments in the program to better understand the impact on Indian applicants.

Historical Context:

The US EB-5 program, also known as the Immigrant Investor Program, was created in 1990 as part of the Immigration Act. The program allows foreign investors to obtain a green card and eventually permanent citizenship in the United States in exchange for investing in a US business or project that creates jobs and stimulates economic growth. The program has undergone several changes and reforms over the years, including the introduction of a new regulations in 2019, which aimed to improve the program’s transparency and accountability.

In recent years, the EB-5 program has gained popularity among Indian investors, who have been attracted to the program’s potential to provide a pathway to US citizenship and the opportunity to invest in US businesses. However, the program has also faced criticism and controversy, including concerns over fraud and abuse, as well as delays and backlogs in the processing of applications.

Summary in Bullet Points:

• The US EB-5 program has seen a 42% year-over-year growth in visa issuance between October 1, 2023, and May 31, 2024, with a total of 7,173 visas issued through consular processing. • However, Indian investors received only 512 EB-5 visas during this period, marking a 22% decline year-over-year. • The monthly visa issuance to Indian applicants at the US Consulate in Mumbai, India, has declined, with only 50-60 visas issued per month and 4 EB-5 visas issued in May. • Data from the Department of State reveals that 120 Indian applicants (or 23%) who received their EB-5 visas in FY2024 reside outside India, suggesting that the decline in visa issuance is not limited to Indian investors. • The top five investor groups receiving EB-5 visas in FY2024 are China, Vietnam, India, Taiwan, and South Korea, collectively accounting for nearly 92% of all EB-5 visa issuances. • Chinese applicants have been the largest group, with over 61% of the EB-5 visas issued so far in FY2024, followed by Vietnamese applicants with nearly 19%. • The US Consular Office in Guangzhou, China, has handled over 58% of the EB-5 visa issuance, while the Ho Chi Minh City Consular Office has processed over 19% of the visas. • More than 64.7% of the total Unreserved EB-5 visas available in FY2024 have been used through May 2024, with at least 9,160 visas used through adjustment of status at USCIS. • The decline in EB-5 visa issuance to Indian applicants is a significant development in the US EB-5 program, and it will be important to monitor the trends and developments in the program to better understand the impact on Indian applicants.