With curbs looming on H1-B visas, Nasscom warns of repercussions

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With curbs looming on H1-B visas, Nasscom warns of repercussions

After reports emerged that the United States' administration was contemplating introducing restrictive caps on H1-B visas, Nasscom issued a caution that the move could adversely affect the business interests of the country.

The American administration's potential restrictions on issuing H1-B visa is mainly targeted towards Indian software companies that avail of the H1-B visas for their employees. The move comes on the back of India imposing tariffs in retaliation after the US withdrew India's name from its Generalized System of Preferences (GSP) trade program.

According to Nasscom, the decision to restrict entry by way of H1-B visa would leave the American businesses, especially the software companies, crippled without those with technical know-how to guide them through. At present, the Indian software industry is worth around $150 billion.

The H1-B visas help these companies to cater to high-profile clients including Facebook and Apple among others. Mumbai-based analytics company Ambit Capital's analyst Sudheer Guntupalli told Reuters, "The American companies themselves need Indian talent, so if there is a cap on these visas, this will impact U.S.

companies also and hurt their business interests. Clearly, this seems to be a retaliatory measure from the U.S. government." Indian IT companies such as Wipro and Infosys whose chairman and Chief Operating Officer (COO) respectively as Nasscom members, however, are waiting for further details on the matter from the US administration. Image Credit: New Indian Express