Trump's new executive order to clamp down on H1B visas

Trump's new executive order to clamp down on H1B visas

Trump's new executive order to clamp down on H1B visas

If enacted, this overhaul of the H-1B visa system will inevitably make it hard for firms to hire at relatively lower costs in America, increasing overall expenses. They should prioritise "the protection of American workers - our forgotten working people - and the jobs they hold", it says.

The previous President Barack Obama had extended the duration of optional practice training work visas, which was taken advantage of by the Indian students who stay a bit longer in the USA after the completion of their studies.

But Silicon Valley companies are also likely to be hurt as they have consistently relied on the program to hire highly-skilled workers and lobbied successive governments to ease restrictions.

Nasscom's revised export guidance is $117-119 billion for this fiscal (2016-17).

The Indian government says it has made its view known to Trump and USA lawmakers.

Congresswoman Zoe Lofgren, introducing the bill, said it would stop companies "replacing" American workers.

H-1B and L1 visas are a class of non-immigrant visas that allow United States companies to hire foreign workers in specialty occupations.

On the other hand, global tech titans like Google CEO Sundar Pichai, Microsoft chief Satya Nadella, Apple's Tim Cook and others have already gone public with their views on Trump's protectionist stance. But if they have a higher mix of consulting or digital, then they will need to meet the client face-to-face. The issue was also raised during the US President's phone call to Prime Minister Narendra Modi, sources told BusinessLine.

Reiterating that Modi was not shy of raising issues, Gurnani said he believed the meeting could happen as early as June and there could be a positive outcome.

Analysts have said the bill would push India's software services exporters to ramp up automation, reducing the need for workers, although IT firms would still need to hire more workers in the US, including university graduates, increasing costs. As per the Bill, visas are given on priority to those firms, which are willing to increase the minimum wage and do away category of lowest pay.

Hours after a legislation was introduced in the US proposing curbs on American firms that hire cheaper, foreign labour, Including from India, knocking off more than Rs 33,000 crore in market valuation of the top five firms, the Indian government said it had expressed its concerns to the US administration and the US Congress.

Lofgren said that the per country cap on employment-based immigrant visas will also be removed.

During his campaign and afterwards, Trump criticised the work visa system for the abuses in the way visas were obtained and the impact on American technology workers. Salary limit for those who are presently living in the USA is not less than $1.30 lakh.

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