President
Trump is beginning to restrict visas for highly skilled workers. India is getting
worried.
Ravi Shankar
Prasad, the Indian government's top information technology official, told
reporters Tuesday that the country's concerns have been conveyed to the U.S.
government "at a very senior level."
"The
whole [technology] movement in the world has been based upon sharing, upon
commonality, upon reciprocity," he said.
The U.S. on
Friday suspended expedited processing of H-1B visas, a move that could hit
India particularly hard.
Indian firms
like Tata Consultancy Services, Infosys (INFY) and Wipro (WIT) use the H-1B
program to send thousands of engineers to the U.S.
Around 70%
of the 85,000 visas issued annually go to Indian workers.
Trump has
slammed what he sees as the abuse of visas by companies hiring foreign workers
at lower salaries -- displacing Americans in the process.
His
administration has pledged to make changes to the H-1B and several other visa
programs, including by executive order. Several lawmakers, both Republican and
Democrat, have also introduced legislation seeking curbs on H-1Bs.
India has
been watching developments with trepidation. The curbs on fast track processing
of H-1B visas will likely hit outsourcing firms that often move workers
overseas on short notice.
D.D. Mishra,
a research director at technology consultancy Gartner, says U.S. companies
often need outsourcing firms to deploy workers quickly to solve unexpected
problems.
"The
agility and the speed which they were expecting Indian IT services to generate
will get impacted," he said.
The U.S.
immigration department said the temporary ban on expedited H-1B visas is aimed
at clearing a backlog of pending applications and reducing the overall
processing time. A standard H-1B application can take more than six months to
be reviewed.
Indian tech
leaders say there aren't enough skilled American workers to fill the gap if
foreign engineers are shut out. As the new curbs were announced, a delegation
from Indian industry body NASSCOM was wrapping up a week of lobbying in
Washington, D.C.
"Additional
restrictions on the H-1B... hurt thousands of U.S. businesses by hindering
access to much needed talent," NASSCOM said in a statement Tuesday.
NASSCOM
president R. Chandrashekhar added that Indian tech firms also create jobs
"by the thousands" for American workers.
"It is
clear that our sector has more work to do in educating U.S. policymakers on the
mutual benefits of strong India-U.S. trade in IT services," he said.
(CNNMoney)
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