US freeze on H-1B visas to hit IT firms coping with travel curbs amid Covid-19 crisis

US freeze on H-1B visas to hit IT firms coping with travel curbs amid Covid-19 crisis

The US resolution to freeze work visas, together with the H-1B visa for extremely expert employees, until the 12 months finish will add to the troubles of Indian software program providers corporations which might be already struggling to deal with journey curbs amid the pandemic.

The choice, fiercely criticised by US tech leaders equivalent to Elon Musk and Sundar Pichai, is the newest in a sequence of measures by President Donald Trump to crack down on authorized immigration to fight staggeringly excessive unemployment ranges within the nation earlier than the presidential elections in November.

The flare-up of the work visa challenge throughout the US election 12 months must be seen as a brief however recurring theme, analysts mentioned.

“President Trump has made it clear that he sees limiting immigration as a key marketing campaign challenge, so it’s probably that because the election attracts nearer, we’ll see additional motion on these points,” mentioned Rebecca Bernhard, accomplice at worldwide regulation agency Dorsey & Whitney.

The Trump administration believes the transfer will open up employment alternatives for Individuals in an economic system that has reported document job losses. Analysts dismissed the declare. That is simply election-year rhetoric, mentioned Siddharth Pai, a enterprise capitalist.

“The US will proceed to have programmes to herald expert employees from India and different nations. Even when the ban is imposed, it’s prone to be for the brief time period,” he mentioned.

Business physique Nasscom mentioned that hundreds of US corporations, universities, medical services, analysis establishments, immediately and thru their associations have requested Trump to not take such motion due to the hurt it could do because the nation reopens and recovers.

Tata Consultancy Providers Ltd, Infosys Ltd and Wipro Ltd have been rising hiring Americans to chop dependence on the H-1B visa amid altering rules. Infosys, Wipro and TCS declined to touch upon the visa restrictions. C.P. Gurnani, managing director and CEO, Tech Mahindra, mentioned the Indian IT trade has ready itself for immigration challenges previously as effectively and the impression can be minimal within the brief time period.

Nandita Mathur and Abhijit Ahaskar contributed to this story.

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