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Last Updated : Jan 03, 2020 06:28 PM IST | Source: Moneycontrol.com

Indian IT industry could take a hit with new H-1B visa rules effective April: Report

Under the new system, employers are required to put forward names of employees requiring a work permit in advance.

H-1B Visa (Representative Image)
H-1B Visa (Representative Image)

The US Citizenship and Immigration Services' (USCIS), the department in charge of issuing the coveted H-1B visas, will switch to a new system come April that could hurt the Indian IT industry, as per a report by The Economic Times.

Under the new system, employers would be required to put forward the names of employees requiring a work permit in advance. Of these, the agency would then shortlist candidates who are eligible to apply for the visa.

Immigration attorneys quoted by the paper believe that the lack of clarity on the detail of the new visa registration process could lead to a delay in the process altogether. This could also mean that companies and foreign nationals applying for the visa may miss the October 1 date when they are supposed to start working.

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Over 70 percent of H-1B visa recipients are Indians. However, under the Trump administration, rejection rates for Indian IT firms have seen a jump from 6 percent in 2015 to 24 percent in 2019, the report noted.

This meant that Indian IT firms will take more time and be more rigourous while placing their application for review, which could further increase costs for these firms.

The report also quoted an immigration expert stating that there may be a possibility of the USCIS revoking the H-4 Employment Authorisation Document (EAD), which allows spouses dependent on H-1B visa holders to work in the US. If this happens, companies in the US might get affected as many families might decide to move back to India.

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First Published on Jan 3, 2020 06:28 pm
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