US tells India it is mulling caps on H-1B visas to deter data rules - sources

NEW DELHI: The United States has told India it is considering caps on H-1B work visas for nations that force foreign companies to store data locally, three sources with knowledge of the matter told Reuters, widening the two countries' row over tariffs and trade.

Two senior Indian government officials said on Wednesday they were briefed last week on a U.S. government plan to cap H-1B visas issued each year to Indians at between 10per cent and 15per cent of the annual quota. There is no current country-specific limit on the 85,000 H-1B work visas granted each year, and an estimated 70per cent go to Indians.

The U.S. Embassy in New Delhi did not respond to a request for comment. A spokeswoman for the U.S. Trade Representative's office referred questions to the State Department, which did not immediately respond to a request for comment.Most affected by any such caps would be India's more than US$150 billion IT sector, including Tata Consultancy Services and Infosys Ltd, which uses H-1B visas to fly engineers and developers to service clients in the United States, its biggest market.

India's Ministry of External Affairs, as well as the commerce department that is typically involved in such discussions, did not respond to an e-mail seeking comment.

Source: News Formal (newsformal.com)

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