The U.S. State Department proposed to stop issuing temporary or B-1 business visas.
What happened?
This B-1 visa is related to occupations normally classified as falling under the H-1B speciality or skilled visa category.
The Trump administration has once again tightened the screws on the country’s immigration system.
It has been done in such a manner that it would directly impact Indian companies contracting with American firms for on-site work.
What is the argument?
The argument is that in the name of the business-related entry of personnel, companies were sending their technology professionals for short-term stays to work on U.S. jobs.
This, in turn, potentially undercuts the wages and employment prospects of U.S. workers.
What could be the impact?
The proposed policy action is significant for following closely on the heels of other similar moves to tighten restrictions on the entry of foreign nationals.
These moves include raising the minimum salaries payable to those applying for H-1B visas, and to stop the issuance of such visas entirely until December 31, 2020.
Taken together, it would be reasonable to expect a painful economic fallout on legal skilled migration from India.
Trump’s ban on new H-1B visa issuance could impact up to 219,000 workers, who would be unable to take up potential jobs in the U.S.
Did India do anything?
To date, there has been no retaliatory policy from India.
At most perhaps diplomatic discussions happened.
In these discussions, the South Block has emphasised that technology and innovation via the trade in services remain a key pillar of the bilateral strategic partnership.
It said that the highly-skilled Indian professionals working in the U.S. help bridge the skill gap, imparting a technological and competitive edge.
What is the situation in the US?
In the backdrop of the steady clampdown on visa issuance is Mr. Trump’s rhetoric on protecting U.S. jobs from foreigners.
The pressure on the White House to increase the tone of this form of protectionism has risen owing to the pandemic’s job-killing effects.
U.S. joblessness spiked to an unprecedented 14.7% in April 2020 and it has dropped off since then.
The electoral campaigns have seen sharp attacks on Mr. Trump’s alleged failure to mitigate the economic crisis.
What is next?
Trump is steadily losing ground in federal and regional opinion polls.
So, it is hardly surprising that areas of legal migration have become policy targets for the White House.
Therefore, the Indian firms seeking to send their employees to the US for short-term work should assume that it will be a long time before they could return to business as usual.
