Lok Sabha Question No. 146 (UNSTARRED), answered on 2017-07-17
Subject: Impact of US Visa Reforms
Ministry: COMMERCE AND INDUSTRY
Asked by: RAVINDRA VISHWANATH GAIKWAD, MAHEISH GIRRI

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO.146(H) TO BE ANSWERED ON 17 th  JULY, 2017

## IMPACT OF US VISA REFORMS

## 146(H).PROF. RAVINDRA VISHWANATH GAIKWAD: SHRI MAHEISH GIRRI:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) whether India and the United States (US) have signed a fresh trade policy and if so, the details thereof along with the impact of the new US Government on the bilateral foreign trade agreement;
- (b) whether  the  Government  has  taken  any  measures  to  protect  Indian  IT  Service Industry  from  the  effects  of  US  H1B  visa  reforms  and  if  so,  the  details  thereof indicating  the  types  of  industries  from  India  that  are  vulnerable  to  the  changes taking place in the US visa programme;
- (c) whether  Indian  offshoring  activities  would  suffer  therefrom  and  if  so,  the  details thereof along with measures taken to mitigate the losses; and
- (d) whether the Government has made strong efforts to strengthen ties between the two countries to ensure certainty and transparency in the US visa system and if so, the details thereof?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

(a) :

No, Madam.

(b), (c) & (d) : The  problems  being  faced  by  the  IT  industry  have  been  raised  by India with the United States (US) Government from time to time at various levels. India has also taken up the matter on US visa fee hike in the Dispute Settlement Body of the World Trade Organization (WTO).

The US has not made any comprehensive changes to the work visa programmes including H-1B visas so far. However, on 18 April 2017, President Trump issued an Executive Order titled 'Buy American and Hire American', giving directives to various Departments of the US Government that in order to create higher wages and employment rates for workers in the US and to protect their economic interests, it shall be the policy of the executive branch to rigorously enforce and administer the laws governing entry into the United States of workers from abroad.  The Executive Order further gives directives to US officials to suggest reforms to  help  ensure  that  H-1B  visas  are  awarded  to  the  most-skilled  or  highest-paid  petition beneficiaries in order to promote the proper functioning of the H-1B visa program.

Similarly,  on  31  March  2017,  the  United  States  Citizenship  and  Immigration  Services (USCIS)  issued  a  guidance  policy  memorandum  on  'H1B  computer  related  positions' according to which, a petitioner seeking to sponsor a beneficiary for a computer programmer position  must  provide  other  evidence  to  establish  the  position  as  a  specialty  occupation, thereby making it harder for companies to use the H-1B visa programme to bring foreign computer programmers into the US.

There are other legislations/bills that have been tabled in the US Congress regarding visa dependent  or  the  so  called  50:50  companies.  There  are  also  Bills  introduced/  legislative proposals being discussed that propose significant restrictions on off-shoring and/or impose border adjustment taxes, however, these proposals have not attained finality.

The Indian Government has made continuous efforts to raise concerns pertaining to IT & ITES industries in different bilateral meetings including in the Trade Policy Forum which is chaired by the Commerce & Industry Minister on the Indian side & the United States Trade Representative on the US side.

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