(The Editor's Pick is a new newsletter from The Hindu that provides a snapshot of the most important stories from today's edition of our newspaper, along with a note from our top editors on why we chose to give prominence to these stories.) The State Department in the U.S. has proposed stopping the issuance of business visas for foreign professionals in job categories that come under the ambit of the H-1B visa. The move could affect hundreds of Indians and Indian companies that do business with U.S. firms. The B-1 U.S. business visa with the multiple entry option and six-month stay is often used by companies to send employees for short-term tasks. The H-1B visa, which has a three-year stay, is allotted in limited numbers and for a select category of skilled work. The rhetoric that foreign workers were taking away American jobs was frequently used by Donald Trump during his 2016 campaign and during his presidency. There have been several attempts to turn that into policy, with Mr. Trump issuing an executive order banning several categories of foreign work visas in June. Once that was overturned by a court in October, the administration issued new rules that would make it more difficult for U.S. companies to bring in foreign workers on H-1B visa. This included limiting the number of jobs that qualified for H-1B visas and a much higher minimum wage that needs to be given to workers on H-1B visas. While the administration's argument is that U.S. companies are using the H-1B visas to get cheaper labour from abroad instead of hiring Americans, the companies, especially big tech firms in Silicon Valley, say that the skills required are not met by the local talent pool. Given that the previous H-1B ban came during the pandemic and had limited impact, and that the number affected by the new B-1 restrictions is minimal, this can be seen as more election-time posturing. But if this administration comes back to power -- though polls indicate that it will not -- this is a sample of the restrictive visa regime that will be in place. This will have a major impact on corporate India, particularly the IT sector, making this story important. |
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