It was a relieving remark by US President, Donald Trump on 9^th January that America would just welcome individuals with reputation and specialty occupations under H-1B visa, giving his justification to ease the extension rules of H-1B program.

The H-1B program offers temporary US visas that allow companies to hire highly skilled professionals working in areas with shortages of qualified American workers. It is estimated that there are 5 – 7.75 lakh Indian H1B visa holders, most of whom are highly trained professionals and small business owners who are helping to contribute immensely and add value to the US economy.

He was cited by Press Trust of India as saying that he would need to see the words ‘justify’ being incorporated into any bill that is submitted, as he asserted that the US too ought to follow in the strides of Canada and Australia by having a legitimacy based migration.

This announcement gives an extension beyond the stipulated period of six years to all foreign workers, most of the Indians in the IT industry, working under H-1B visa in US companies. Indian technology companies depend on H-1B visas to hire employees every year for their US operations. The US market accounts for around 60% of the revenue of Indian IT sector.

The USCIS (US Citizenship & Immigration Services) said in a report that it is not considering a regulatory change that would require an H1-B visa holder to leave the States by any changing interpretation. It is reported that the agency had taken the decision under intense pressure from business and technology sectors where several Indians and leaders raised a strong objection to the last week’s proposal of non-extension of the H-1B visas.

Any disruptive news could have been detrimental to both India and US given that there is a real problem of shortage of skilled professionals in US.

It tightens the definition of visa dependent companies to impose fresh curbs in terms of minimum salary and movement of talent. Visa dependent companies will have to raise the minimum salary of H-1B visa holders under the proposed bill and also see that the visa holder is not displaced as an employee for a tenure of at least 5-6 years.

Be in touch with ISA Global for updates under H-1B visas.