INDIA ‘VERY STRONGLY’ RAISES H1B VISA ISSUE WITH US: PRABHU

India has “very strongly” raised the issue of H1B and L1 visas with the US, Union Minister Suresh Prabhu ( pictured) said on Saturday. “We explained to them that we were not raising this issue because Indians would find it difficult to come, but because the US economy itself would find it difficult to cope with the reality, as the US has been immensely benefited by IT (information technology) professionals penetrating into the market by offering services that has improved their productivity,” Prabhu said after the first US-India bilateral Trade Policy Forum under the Donald Trump administration.

India has “very strongly” raised the issue of H1B and L1 visas with the US, Union Minister Suresh Prabhu said on Saturday, asserting that the American economy will find it difficult to cope with the reality, as it has been immensely benefited by Indian information technology (IT) professionals.

The US has tightened the norms for issuing the most sought-after H1B and L1 visas in line with the Trump administration’s goal to protect American workers from discrimination and replacement by foreign labour.

In a new directive, the Trump administration this week made it more difficult for the renewal of these visas, popular among Indian IT professionals, saying that the burden of proof lies on the applicant even when an extension is sought.

Under the current US rules, Indian IT professionals working in the US on H1B visas do not get back their hard-earned contribution to Social Security, which runs into at least $1 billion per annum.

“We raised very strongly the issue of Indian professionals, and H1B and L1 visa issues,” Prabhu said after the first US-India bilateral Trade Policy Forum (TPF) under the Trump administration, which was also attended by US Trade Representative Robert Lighthizer.

“We explained to them that we are not raising this issue because Indians will find it difficult to come, because US economy itself will find it difficult to cope with the reality because the US has immensely benefited by IT professionals penetrating into the market by offering services that have improved their productivity,” Prabhu said.

Batting for Indian IT companies, he also strongly raised the issue of totalisation. “I hope they will look into the issue,” Prabhu said, as he pointed out towards the issue of mismatch between US visa and US social security regimes, wherein Indian professionals making social security contributions do not receive their due benefits upon their return to India.

Meanwhile, the US and India have also agreed to address the issue of trade deficit by increasing and diversifying bilateral trade, the minister said as he sought easing of procedures for export of mangoes and pomegranates to the US.

Taking note of America’s concern on price controls on medical devices, Prabhu, during his meetings with Lighthizer on Thursday, encouraged US companies to take benefit of the Make in India policy and establish manufacturing facilities in India, which would considerably bring down the cost.

During the inaugural India-US Commercial dialogue, US Commerce Secretary Wilbur Ross stressed on the need to increase bilateral trade between the two countries to address the issue of trade imbalance, a point which keeps on popping up in the remarks of US President Donald Trump.

Reducing imports from India is not an option, Ross was quoted as saying by Prabhu.

“The Commerce Secretary clearly said trade deficit is an issue, but not by reducing imports from India but promoting more exports from the US to India, which is absolutely a very positive and forward-looking idea, which we welcome,” Prabhu told reporters at the conclusion of his two-day visit to Washington DC.

In the next few years’ time, India would actually be able to buy more from the US. India has started buying crude oil from the US, he said, adding that there is great potential for the US in the fast expanding aviation market in India.

Indian aviation companies such as Spicejet and Jet Airways have placed orders for over 300 aircraft, worth several billions of dollars.

As American companies shift their manufacturing base from China to the US, this would also result in more American export to India, Prabhu said.

He said the two countries have agreed to work on the issue of poultry, pork and intellectual property right.

“We already have made some substantial progress,” he said.

Acknowledging that there is a very strong issue on medical devices, Prabhu said he explained to his American counterpart that public health is a priority issue for the Indian government.

“This is something we would have to balance between the commercial interest and the larger public interest,” he said, adding that there is a review due early next year, during which concerns of the US would be relayed back to the reviewers.

Prabhu said that his meetings have yielded very positive results in removal of barriers in export of Indian mangoes to the US. The US market was opened up for Indian mangoes during the tenure of former president George W Bush. But, in reality US adopted tougher irradiation procedure, which not only makes its very expensive, but also time consuming.

India has been demanding preclearance be transferred to Indian National Plant Protection Organisation, which is well equipped and trained to do the necessary inspection and meet the US standards. India has made significant investments in the US and Indian skilled workers and students make important contributions to the US economy As the Indian economy grows, and with the renewed emphasis on reviving US manufacturing, there will be greater opportunities for US exports to India Has started to import crude oil and soon will start to import LNG from the US Indian aviation companies such as SpiceJet and Jet Airways have placed orders for over 300 aircraft, valued at several billions India had a trade surplus of almost $20 billion in FY17, with exports standing at $42 billion and imports at $22 billion

“WE ARE NOT RAISING THE ISSUE BECAUSE INDIANS WILL FIND IT DIFFICULT TO COME (TO US), BUT BECAUSE THE US ECONOMY WILL FIND IT DIFFICULT TO COPE WITH THE REALITY, AS IT HAS IMMENSELY BENEFITED BY IT PROFESSIONALS PENETRATING INTO THE MARKET BY OFFERING SERVICES THAT HAVE IMPROVED THEIR PRODUCTIVITY” “THE COMMERCE SECRETARY CLEARLY SAID TRADE DEFICIT IS AN ISSUE, BUT NOT BY REDUCING IMPORTS FROM INDIA BUT PROMOTING MORE EXPORTS FROM THE US TO INDIA, WHICH IS ABSOLUTELY A VERY POSITIVE AND FORWARD-LOOKING IDEA”