How India will feel the sting of Trump’s H-1B visa fee hike
Saturday night at a bar in Shubra Singh’s Pittsburgh was ruined by the White House.
Eight Indian friends on the table, all technicians on the H-1B visa, was glued to their phones while trying to get more information about US President Donald Trump’s last move to increase fees for H-1B visa applications.
Singh, an Indian biotechnology expert on a business trip to the United States, sent Singh to his families crazy “any article about the H-1B status”.
Approximately 71% and 11.7% of H-1B visa holders in the US are Indian and Chinese citizens. Trump, H-1B visa fees to $ 100,000, according to the uncertainty of US employment.
Since Washington has brought additional tariffs to India exports in response to the ongoing Russian oil purchases of the new Delhi, the relations between the United States and India have worsening for the last few months.
When he returned to India, the shares of Indian CT companies were rejected on Monday after the US announced to bring new employees to the country.
Stock market effect
Movement can be reduced to a major blow, especially in the technology and financial sectors – primarily from India and China to high -skilled immigrants.
“If a visa fee of $ 100,000 for H-1B visa applications, Citi Research said in a note on Sunday,” H-1B visa fee is applied, “IT services will increase the cost of doing business for the latest customer business in the United States and affect margins for IT services companies,” Citi said.
The cost of doing business in the United States “can not be completely transferred to customers”, he added that the margins of Indian CT companies will increase.
Investors reacted to the news. InfoS– Tech Mahindra– Wipro– HCL Technologies And TATA Consulting Services.
Small and medium -sized firms were also lost space. Permanent systems– Coforge– Mphasis– FirstSource Solutions And Sherry Stocks in London (1.30 am) falling between 1.7% and 4.2%.
Stock market moves show that investors expect workers on H1-B visas to increase the recruitment price significantly.
Analysts, by sending workers to “close to the shore” centers such as Mexico or Canada, replacing H-1 B with US residents or citizens, or by doing more work for India’s growing “global capacity centers”, as a result of new costs, companies are likely to change their personnel strategies as a result of new costs.
“We have been constantly reducing our confidence in visas through increasing local recruitment, purchases and partnerships for years,” Monday said to investors on Monday. ” He said. “We work exactly for all existing customer requirements and we will work in a business mode as usual.”
Toshi Jain from JPMorgan predicted that although it was modest, it would be felt far beyond the technology sector of India.
The economist said that a decrease in the number of new H1-B visa holders would probably lead to a decrease in the transfer to India.
Jain also has a decrease that Indian students have chosen to go to the United States in the coming years, as Jain may also work as a new “tax” to find a job in the United States.
