US Lawmakers Pushes To Limit H1-B Visas For Overseas Skilled Workers

17 Dec 2015

The lawmakers of United States are making new attempts to limit visas for skilled overseas workers. It’s a big threat to Indian software companies like TCS and Infosys.

Ted Cruz, a contender for the Republican presidential nomination, said that the salary of visa holder should be set to at least $110,000. The figure is approximately one third more than the average paid in 2013, the data from Indian industry body Nasscom has revealed.

 Reportedly, senators from both parties wish to limit the number of visas available each year by 15,000 to 70,000. They also want to stop firms that have already had half of their work force in the country to get visas.

Sources stated that similar reforms failed to pass in 2013. The proposal is unlikely to execute in the short-term but limitations would be a worry if the Republican Party won the election next year.

IT has turned out to be a crucial Indian export. On a whole, the sector forms more than a quarter of India’s international trade. TCS is the most valuable listed company making up $69 billion.

According to the Reserve Bank of India, IT services formed $82 billion worth of exports in the fiscal year ending in March 2015. Around 60 percent of the figure is from North America.

New Delhi clearly stated that any sudden move to its outsourcing industry would make the nation less receptive in assisting US companies that are in trouble in India.

Apparently, higher wages and fewer visas would also hurt other firms like IBM and Accenture.

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