InvestorQ : What are the key highlights of the proposed ban on H1-B visas by Trump and how would it impact companies like Infosys, Wipro and TCS?
ishika Banerjee made post

What are the key highlights of the proposed ban on H1-B visas by Trump and how would it impact companies like Infosys, Wipro and TCS?

Answer
user profile image
Niti Shenoi answered.
4 months ago


Donald Trump is likely to sign an Executive Order introducing restrictions on H-1B, L-1, and other temporary work permits for foreigners. This is part of an effort to protect local jobs for Americans in the midst of rising unemployment. Here are the highlights.

· Trump has averred that restrictions would have some exclusions like for the large businesses. The US has been dealing with high unemployment rates due to closures on account of the COVID-19. This is likely to impact thousands of workers who were to travel to the US on H1-B visas for specific projects.

· It needs to be noted that close to 70% of the 85,000 of such permit visas issued each year are to Indians. Most of the IT companies like Infosys, TCS, Wipro and others use these visas for offshore projects in the US. This is unlikely to impact existing H1-B visas already issued but could impact fresh issue of visas and impact client commitments. |

· Immigration lawyers have, however, revealed that over the last few years Indian IT companies have reduced their dependence on H-1B visas and are hiring more locally. Most of the US beneficiaries of these visas are US giants like Google, Amazon, Facebook and Microsoft.

· The share of Indian companies among the top ten visa recipients has dropped from 51% to 24% since 2016 when Trump assumed charge as the President of the US. The US jobless rate has spiked from 4.1% to 13.5% and that is raising the clamour for local jobs. It could hit Indian IT companies in the short run but long run impact will be limited.