H1B Visa Ban Will Extend Till October? Indian IT Firms Will Be Impacted; Nasscom Warns About US Economy

The Covid-19 pandemic has harshly affected the world economy. This period is marked by massive lay-offs and poor market growth trends.

Many companies in the US have started downsizing, due to the economic fallout of the coronavirus pandemic.

Speaking of the United States, the unemployment levels in the country are mushrooming at unbelievable levels.

Due to this reason, the Trump administration has time and again, resorted to secure their borders and bar the entry of any immigrants, at least until a firm decision on the ongoing pandemic settlement comes in.

Trump Government to Continue Visa Restrictions?

On April 22, 2020 the Trump administration issued a presidential proclamation, as per which of most new immigrants, with exceptions for some guest workers, were temporarily suspended.

The President delivered that 60 days from then, the administration will provide information on whether the suspension on most work visas for immigrants shall still be valid.

This 60 day period expires on Monday.

The Trump administration had a meeting on Tuesday, consisting of its top advisers and cabinet members, regarding the suspension on issuance of visas to work employees and other segments of immigration into the U.S.

The economic argument is expected to be raised again in an anticipated expansion or new immigration executive order. The administration could further halt the immigration.

Why is Trump Govt Suspending Visas?

H-1B is the most coveted foreign work visas for technology professionals from India. 

Suspending immigration visas include a major chunk of H-1B work visas that are used by U.S. and Indian IT companies to immigrate multitude of Indian based IT professionals into the U.S.

With the unemployment levels rising dramatically, the U.S. government wants to ensure every possible step to provide employment for fellow Americans, at the cost of barring the entries of foreign nationals into the U.S.

As per reports, the H-1B visa could be suspended extending into October 1, which is when new visas are issued. 

Suspension of Tech Visas to Degrade American Economy: Nasscom

According to Shivendra Singh, Vice President & Head, Global Trade Development at NASSCOM, suspension of immigrants, especially tech workers from entering into the U.S., will not just impact the Indian economy but also the American economy.

He reports that there are a plethora of companies which utilize non-immigrant visas, including H1B visa, H-2B visas and others, the suspension of which will surely impact the global industry. 

Tech workers, in this time of Covid-19 pandemic, are playing crucial roles in connecting one sector to the other, tirelessly.

While there is no clarity on how long the suspension is to stay, Indian IT companies are expecting suspension to be valid for fresh visa issuances starting from October.

If there is a temporary restriction or ban that goes beyond the first of October, it will definitely impact the new H1B visa season.

Many reports suggest that more than impacting the Indian economy, the suspension of work visas in the U.S. will directly affect a major section of the American economy.

Indian IT Cos Reduces Dependency on H-1B Visas

Several reports have suggested that many Indian IT companies have reduced their dependency on H-1B visas, over the time.

• TCS and Infosys have only 40-50% exposure to H-1B visa,
• Wipro and HCL Tech show only about 30-35% of this dependency.