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Proposed H-1B visa cut counterproductive to US: Nasscom
National Association of Software and Services Companies (Nasscom) on Wednesday said the proposed 15,000 H-1B visa cut legislation introduced by two US senators will be counterproductive for the growth of the US technology industry.
 
“The recent legislation introduced to cut down the number of H-1B visas by 15,000 and proposing a priority parameter for highest wage earners will be counterproductive for the growth of the US technology industry,” a Nasscom statement said.
 
Earlier on Wednesday, Democratic Party senator Bill Nelson and Republican Party senator Jeff Sessions introduced the legislation in the Senate. 
 
With the proposed bill, the senators aim to directly target outsourcing companies that rely on lower-wage foreign workers who replace equally qualified US professionals.
 
If the proposed bill is passed, among other restrictions, it would require American employers to first strive to hire a US citizen and proceed to hire a H-1B visa holder only if they can't do so.
 
The premier industry body said the H-1B visa policy compensated the US for the shortage of skilled workers with a carefully calibrated approach that balances immigration with various measures to encourage Science Technology Engineering and Math (STEM) education and training for US citizens.
 
“The bill does nothing to address the root cause of the problem, STEM skills shortage in America, where H-1B and L-1 non-immigrants fill the skills gaps in the US economy and positively impact the ability of US-based companies to access global talent,” said the statement.
 
According to Nasscom, paucity of computer scientists, software developers and programmers in the US is getting compounded as their demand across all sectors in the US economy is only rising.
 
Nasscom highlighted several studies pointed to a four-fold vacancy rate rise in STEM jobs in the US compared to other sectors.
 
“India and US have built a strategic partnership across sectors and recognise that free movement of global talent is a critical success factor for this partnership. Discriminatory or protectionist measures would adversely impact the India-US trade,” the statement added.
 
The proposal will have repercussions on the Indian IT industry as H-1B visa is highly popular and well availed.
 
Currently, US issues a maximum of 85,000 H-1B visas annually.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Lalit S Kathpalia

1 year ago

The dependency of the Indian IT industry on the H1B visa is a very big constraint. The Indian IT industry will have to be innovative to get rid of this hurdle else be ready to see business being impacted due to the H1B visa limits

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Nifty, Sensex getting oversold – Wednesday closing report
Nifty is due for a short bounce which may not sustain
 
We had mentioned in Tuesday’s closing report that Nifty, Sensex continue to look weak and that while the downside in Nifty may be restricted, it will be bullish only if closes above 7,850. The Indian stock markets continued in their bearish trends on Wednesday and the major indices closed with losses of around 1% over Tuesday’s close. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
 
 
Dimmed prospects of key economic legislations getting the parliamentary nod in the winter session, coupled with a slowdown in the Chinese economy and falling commodity prices led to losses in the major indices over Tuesday’s close. Both bellwether indices opened on a negative note following their Asian peers. Domestic cues like the parliament logjam which has reduced the chances of the Goods and Services Tax (GST) bill getting passed during the winter session, eroded investors' confidence. Should the bill not secure passage in this session, it will miss its intended roll-out date of April 1, next year. Foreign investors continued selling of equities in the Indian markets ahead of a likely US rate hike -- further depressing investors. In addition, oil and gas and energy companies stocks stayed on their downward trajectory due to a dip in global crude oil prices. Besides equities, the Indian rupee, too, remained under pressure. The negative news for the information technology (IT) industry coming from the US, where it has been proposed to cap the H1B visas, adversely impacted investors risk taking appetite. 
 
Oil prices fell on Tuesday as market expected that global supplies will continue to exceed demand. The Organisation of the Petroleum Exporting Countries (OPEC) last Friday decided to keep crude production pumping at the current level in the already oversupplied market, and for the first time in decades, failed to agree to a production ceiling. The group currently produced about 31.5 million barrels a day. Traders worried the prolonged supply glut would continue to drag the oil market down. US crude oil production is forecast to decrease through the third quarter of 2016, according to a report released by US Energy Information Agency (EIA) on Tuesday.
 
Indian automobile major Tata Motors on Tuesday said it launched Safari Storme VX, the latest variant of its Safari Storme range of SUVs. "We at Tata Motors are delighted with the launch of a new more powerful variant of the Safari Storme - the Safari Storme VX," said Mayank Pareek, president, Passenger Vehicle Business Unit, Tata Motors in a statement. With the price ranging between Rs.13,25,530 to Rs.14,59,952 (both ex-showroom New Delhi), the SUV, powered by the new 2.2 L VARICOR 400 engine, is available in 4x2 and 4x4 drive options. Tata Motors share closed at Rs393.95, down 1.98% on the BSE.
 
Union Fertilisers Minister Ananth Kumar on Wednesday said there will be a separate ministry for pharma and medical devices sector in the next one year, and assured that the government will soon implement the Katoch panel recommendations to cut bulk drugs import from China. "I want to see that pharmaceutical and medical devices become a separate ministry and we are already in touch with PMO and we are pursuing that it becomes a separate ministry..I assure you in next one year you will emerge as a separate entity as pharma and medical devices ministry," Kumar said at an event organised by PHD Chamber of Commerce. He added that the government recognises the pharma sector as a 'sunshine industry' having a tremendous potential for growth. Anant Kumar said that in order to benefit the domestic pharma industry, the government plans to implement the recommendations by the Katoch Committee in the next 100 days.
 
Investment bank Goldman Sachs has said India will grow 7.5% this year and 7.9% in FY17. In an interview to CNBC-TV18, chief India economist Tushar Poddar says while rural demand remains subdues, urban demand is picking up significantly. Furthermore, he says the cyclical upturn is likely to continue next year, driven by this domestic demand. On the road ahead, Poddar says the Reserve Bank of India has very little room to cut rates ahead, adding that he sees lesser risk to India from US Fed rate hike.
 
Lawrence Summers, Former Treasury Secretary of the United States and President Emeritus of Harvard University, today called for the Federal Reserve to up its interest rate for the first time in nine years, saying it would be prudent to do so. "A strong predicate has been laid," he said, pointing to strong recent macro-economic data that has emerged out of the world's largest economy, where rates have stayed at near zero since it plumbed into a financial crisis in 2007-2008. "Central banks have to act in consistent ways to preserve credibility. There have been very clear statements (from Fed officials) towards a rate increase this time," Summers, who was treasury secretary in 1999-2000 and director of President Obama's National Economic Council, said. An increase in interest rates in US could lead to a reduction in aggregate investment of foreign institutional investors in the Indian stock markets.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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