Part of: GS Prelims and Mains II – Foreign policiesaffecting India’s interests; Diaspora
Context:
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.
