The new visa rules can result in the shortage of skilled workforce, especially professionals involved in science, technology, engineering or mathematics, in the US and the existing Indian H-1B visa holders can benefit from it, in the form of higher remuneration, said a top official
With the US temporarily blocking the entry of foreign workers coming into their country on certain visas, the union government on Tuesday said that the move will not impact existing Indian H1-B visa holders and impact of the order will be limited.
This can result in the shortage of skilled workforce, especially professionals involved in science, technology, engineering or mathematics, in the US and the existing Indian H-1B visa holders can benefit from it, in the form of higher remuneration, resulting in higher remittances, top government official told Mint.
The official, who did not wish to be identified, said that the US government’s latest decision is likely to benefit 3 lakh H1-B visa holders from India.
The US issues around 85,000 H-1B visas every year, and India takes 70% of all the H-1B visas issued annually.
The official further said that the impact of the order will be limited as the restriction is for six months. As a result, the number of visas that would be impacted will be 30,000, at the most. “However, in view of the rising unemployment and weak economic conditions due to coronavirus, US would have issued much lesser visas (say around 5-10,000) and this proclamation would have limited effect," the official said.
On Monday, the US President Donald Trump issued an executive order to temporarily suspend work visas, such as L-1A, L-1B, J-1 and the popular H1-B category for skilled workers till year-end. Individuals that have already received these visas, or trying to enter the US for the first time from 24 June to 31 December, will not be allowed.
The crackdown on legal immigration is a step to save jobs of the American citizens, in the backdrop of the outbreak of the global pandemic, hurting economic activity in the US. “We have a moral duty to create an immigration system that protects the lives and jobs of our citizens," Trump said in a statement.
The official also said that this will result in returning of high-skilled individuals back to India. “These highly skilled individuals are in high demand in science and technology sectors in India, and they can directly contribute to India’s progress by staying back," the official said.