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H1-B visa cancellation will be a lose lose situation

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India and the USA are risking combat over trade and technology. Each side has applied new tariffs, and the Trump administration has raised objections over boundaries American companies face.

Now, there’s reportedly a brand new risk hanging over the relationship — the USA could also be seeking to hit India where it hurts by slashing the variety of visas obtainable to its skilled employees.
The Trump administration has informed India it’s contemplating capping the variety of H-1B visas granted to some nations, Reuters reported Thursday, citing three sources with information of the matter. The cap would apply to countries that pressure overseas firms to store data regionally, based on Reuters.
The US State Department denied considering a cap on the variety of H-1B visas.

H-1Bs have been a major irritant within the US-India relationship lately.
The visa program permits tens of thousands of workers to return to America yearly, and India accounted for 75% of accredited H-1B functions in 2017 — the most recent year for which US government data is offered. China, the second-largest recipient, accounted for lower than 10%.
Trump has repeatedly accused tech firms in the US of utilizing this system to exchange Individuals with cheaper overseas staff.
His “Buy American, Hire American” executive order in April 2017 referred to as for a complete assessment of H-1B visas, and his administration has already made several changes to this system.
Issuing far fewer visas would increase tension with India and harm huge corporations on each side.
This system has been essential to the expansion of India’s $177 billion tech trade, with outsourcing corporations like Infosys (INFY), Wipro (WIT) and Tata Consultancy Services leaning closely on it to ship staff to American clients such as PepsiCo (PEP), Kellogg (K), Microsoft (MSFT) and GE (GE).

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Alexander Baker

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