A Move on H-1B Will Be Harmful for America Too, Says Nasscom

Due to shortage of skilled professionals in America, a move on H-1B will affect both India and America: Nasscom.

Any disruptive move on the visa front will be detrimental for both India and the US, with reports suggesting that Washington DC may be mulling over new rules to prevent H-1B visa extensions, software body Nasscom has said.

Estimates show that such a move could lead to deportation of over one million H-1B visa holders in the US – many of them Indians – who are waiting for their green cards.

A Times of India report adds that America reportedly falls severely short of STEM (science, technology, engineering and mathematics) skills, thus creating the need for MNCs to send across hundreds of relevant Indian skilled workers on H-1B visas to the US.

"It is not only about the Indian IT industry but about all Indians who use H-1B visas... Given that there is a real problem of shortage of skilled professionals in the US, any disruptive move will be detrimental for both India and the US," Nasscom President R Chandrashekhar told PTI.

Naascom also said that the move would seriously affect “US competitiveness”, reports Times of India.

Naascom’s comments came in light of the news that the US Department of Homeland Security is considering new regulations, which will prevent H-1B visa extensions during pendency of green card approvals.

In other words, if this materialises, the move would prevent foreign workers in the US from keeping their H-1B work visas while their green card application is under processing. However, according to Stephen Yale-Loehr, professor of immigration law practice at Cornell Law School, it will take several months for this move to be implemented, if at all, reports Times of India.

It is one more step in a series of steps seen over the last one year. While each one individually may have a small impact, cumulatively the impact becomes very significant.

R Chandrashekhar told PTI

According to Nasscom, the use of visas by Indian IT firms has fallen by 50 percent in the last two years and that the number now stands below 10,000 (of the 85,000 H-1B visas issued annually).

To brace against the impact, Indians IT firms have also been ramping up local recruitments and training manpower in the US.

Greyhound Research Chief Analyst, Founder and CEO Sanchit Vir Gogia said changes in the H-1B visa arrangement will add immense cost pressures on Indian IT companies.

The announcement can also impact the GDP and the overall business and economic growth of the US.

Nasscom has been of the view that this proposed legislation has conditions which are extremely onerous and will make it very difficult for people to not just get the visa but also on how these work permits can be used.

(With inputs from PTI and Times of India)