In the wake of job crisis in the US, on Friday there were reports that the US President is considering suspension of work visas including the much sought after the H-1 B visa.
And if the proposal goes through, the Indian IT industry will have to deal with a severe blow and that would straight away that until the ban shall be lifted no new H1 B visaholder outside the US will be able to come up for work. On the contrary, visa holders which are already residing in the country will not be affected by the move.
As per reports, of the 85000 H1B visa applications, Indians takes 70% of it. And IT organizations use the H1 B visa widely for sending their highly skilled workforce offshore. Also this suspension of H1 B news coincides with the time when the percentage of visa rejection by the US is trending higher from just 6% in 2015 to 24% in 2019.
Further, if the plan goes through, then IT companies will need to up their local hiring in the US, which would mean an increased cost for them and hence a dent on their margins.
On Friday, on visa suspension news stocks of Indian IT companies were dragged lower by over 1%.