Visa changes could stunt budding US-India ties

Washington: The US and India seem like a natural fit in the Trump era: rambunctious democracies, led by populists, focused on economic growth and fighting radical Islam. It’s a budding partnership that could be set back by a nuts-andbolts dispute over employment visas.

As President Donald Trump looks to help American workers, his administration is considering a broad review of a visa programme used heavily by India’s massive technology and outsourcing industries to send programmers and other computer specialists to the United States.

Speculation about tougher rules on so-called H-1B visas sent tech stocks tumbling in India last week, and compounded concerns about the protectionist direction of US policy after Trump temporarily suspended immigration from seven Muslim-majority countries.

The technology sector is vital for India’s economy and creating jobs for a fast-growing, young workforce – a top priority for Hindu nationalist Prime Minister Narendra Modi. America is the main customer: It accounted for more than 60% of India’s US$108bil (RM479bil) in foreign tech and outsourcing sales last year, according to the National Association of Software and Service Companies, an Indian industry lobby group.

“There is a general sense of anxiety in the industry,” said Dipen Shah, an IT analyst at Kotak Securities in India. He said it seemed likely that the cost of hiring people on H-1B visas would increase, hurting tech companies’ bottom lines.

A draft executive order prepared by Trump’s team is short on specifics. It calls for a report within nine months on the injury caused to US workers by several working visa categories, including H-1B, and a re-consideration of how to allocate the visas to ensure they go to “the best and the brightest”.

The US government grants up to 85,000 of these visas each year. They’re open to a broad range of occupations and recipients who can stay in the country for up to six years. First Lady Melania Trump, who comes from Slovenia, had one as a fashion model in the 1990s.

The top occupations, however, are tech-related and about 70% of the recipients are Indian.

There is a general sense of anxiety in the IT industry. Dipen Shah