2019 – Posted in: Daily News

H-1B VISAS GRANTS FOR INDIANS TO 15%

For: Preliminary & Mains

Topics covered: About H-1B visas, restriction on 15%, imposing new data localization rules, impact on IT sector

News Flash

The US government has restricted the H1B visa grant for Indians to 15 percent. The move is likely to affect the IT industry and IT professionals who serve foreign countries or foreign clients from India.

The restriction seems like an after-effect of new data localisation rules in India.

Continuing on the ongoing trade tension between the US and India, the US government has said that it is planning to curb the distribution of the H-1B visa to Indians.

The H-1B visa is one of the most popular ones for foreigners visiting the US for business or trade purposes.

Highlights

The US is planning to restrict H-1B visas for Indians to 15 percent.
The visa restriction is an aftermath of India and other foreign countries imposing new data localisation rules.
The H-1B visa restriction could highly affect the Indian IT sector.

US H-1B visa restriction: Why has this happened?

Many countries have been lately enforcing data localisation laws for foreign companies. India is the latest entrant in this club and the new law requires all foreign companies to localize their data.

The US has been opposing this idea and in a bid to force the foreign companies to withdraw this law, it is planning to curb the visa distribution.

Why Data Localisation matter?

Data localisation is seen as a major benefit for any government of the world. With data stored locally, the local government will have more power and control over the data of foreign companies. This puts countries like the US at a major disadvantage.

What could happen to the Indian IT sector?

India is one of the biggest countries to contribute to the IT sector in the US and the H-1B visa restriction could affect thousands of Indian IT professionals abroad.
With lower allowance for H-1B visa to India, Indian IT professionals could struggle with IT jobs in the USA.
Not only IT professionals, but Indian IT firms could also face difficulties in serving their foreign clients.
With restricted H-1B visas, firms such as TCS and Infosys wouldn’t be able to send their personnel to the US for servicing the clients.

H-1B Visa

The H-1B visa provides an opportunity for foreign professionals to work in the United States. The foreign professional has the possibility to obtain a U.S. position based on his/her acquired skills.

H-1B cap

Every fiscal year, the H-1B visa is limited by an annual cap of 65,000 visas. However, there are some applicants that are exempt from the cap.

The H-1B worker is employed or petitioned on behalf of an institute of higher education it is not subject to the H-1B cap.

Source: India Today

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