Commentary: Trump’s H-1B visa freeze shows that warm ties between US and India are mostly for show

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Domestic interests have always prevailed in negotiations between India and the US, says ISAS’ Amitendu Palit.

entry of foreigners under specific categories of temporary work visas, disrupting the lives of non-immigrant workers to the US – particularly that of Indian workers.

India received more than 130,000 H-1B visas in 2019, accounting for 70 per cent of such visas issued during the year. It was also issued more than 40,000 L category visas in 2019, compared with around 10,000 for China and Mexico each.President Trump said the intention of the visa freeze is to protect American workers, since the COVID-19 pandemic has severely impacted the local economy and jobs.

The US government has been slowly tightening visa regulations in line with the “Buy American and Hire American” executive order of April 2017, which aims to boost wages and employment for American workers by doubling down on immigration laws. While existing H-1B and L visa holders are unaffected by the visa freeze, they face the prospect of their visas not being extended. This is grim news for Indian professionals at a time when tech industries are contracting and employment prospects diminishing across the world.

The long-term impact of the suspension might be cushioned if it doesn’t last beyond 2020. But if it does, then Indian IT businesses might be forced to consider relocating parts of their American operations elsewhere, such as Canada or Mexico, for servicing the North American market. The US withdrawal of the Generalized System of Preference benefits to Indian exports has taken away Delhi’s preferential access to the US market.

 

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