The US Congress is all set to pass a new Immigration Bill referred to as S744 that could result in a loss of $30 billion annually for India, effecting mostly the IT industry. “The Border Security, Economic Opportunity and Immigration Modernization Act” – otherwise called as Bill S 744, proposes to restrict the use of H1B and L1 Visa holders in American corporations.
“If the bill becomes a law, then India’s GDP gets reduced by about US $30 billion a year. On top of that, employment situation will be badly hit. Direct impact will be 10 million Indian IT Professionals will no longer have any work and 500,000 in the US,” IAAC Chairman Shalabh Kumar told. Indian American Advisory Council – IAAC is a body that advises US House of Representatives on India related issues.
H1B Visa category allows a foreign national to work in American companies in America, while L1 allows a company with offices in several countries to send their workers on projects to American branches. These visa categories are mostly used by Indians.
The present Bill under consideration, being pushed by the Democrats, is proposing to restrict such visa’s to under 15% in an American company’s total workforce. It also limits the proportion of H1B and L1 visa workers relative to a firm’s total US employees to 50 per cent by financial year 2017, starting October 2016.
The Indian government is not taking enough interest in the issue and the Indian populace in America do not have right representation to effectively act against such legislation, pointed out IAAC’s Shalabh. He requested immediate focus on the issue as Democrats might push for the bill’s passage before the US mid term elections in November.