Suspension of H-1B visas and its impact
Part of: GS Prelims and Mains II – Foreign policies affecting India’s interests; Diaspora
- US President on June 23 suspended the H1B visas, along with other types of foreign work visas, until the end of 2020 to protect American worker.
- Trump administration announced that it won’t tolerate firing of Americans for cheap foreign labour.
- This would be a major set back for the Indians as a majority of the H-1B visas were allotted to Indians.
Impact on Indians
- Suspending H-1B and other work visas is likely to affect the movement of skilled professionals, and to have impact on Indian nationals and industry
- People-to-people linkages, as well as trade and economic cooperation in technology and innovation sectors, are an important dimension in the US-India partnership.
According to a domestic rating agency –
- Suspension of the H1-B visas by the US will cost domestic IT firms Rs 1,200 crore and have a marginal 0.25-0.30 per cent impact on their profitability.
What is a H-1B visa?
- The H-1B is a visa in the United States under the Immigration and Nationality Act, which allows US employers to temporarily employ foreign workers in speciality occupations.
- A speciality occupation requires the application of a specialised knowledge and a bachelor’s degree or equivalent of work experience.
- The duration of a stay is three years and can be extended up to six years. Once this period is over, the visa holder will need to re-apply.