Abdul Rahman
Opposition parties strongly rejected the US announcement of a hike in the H-1B visa price last week. They called it a bullying tactic and an attempt to humiliate the country.
US President Donald Trump announced on Friday, September 19, that all new applicants for the country’s H-1B visas will have to pay a minimum fee of 100,000 US dollars. The new fee took effect at midnight of Sunday, September 21.
The existing fee for an H-1B visa was between 2,000 US dollars and 5,000 US dollars.
Millions of foreign citizens working in the US on temporary work visas called the H-1B. Most H-1B holders are working in high-tech companies or in high-skilled jobs, such as doctors, professors, among others.
However, the Trump administration has claimed the program has been misused by the employers to suppress wages and discriminate against the local employees.
As per the executive order signed by Trump, “some employers have abused the H-1B statute and its regulations to artificially suppress wages, resulting in a disadvantageous labor market for American citizens.”
Though the high fees will make it difficult for employers to hire foreign workers, the Trump administration claims that it does not want to abolish the program, given its potential to invite foreign talent.
The US Secretary of Commerce Howard Lutnick claimed that the move to hike the fees does not hamper the H-1B program, rather it should correct its misuse as the program should only attract “extraordinary people at the very top.”
“If you are going to train somebody, you are going to train one of the recent graduates from one of the universities across our land. Train Americans. Stop bringing in people to take our jobs,” Lutnick was also quoted saying by Reuters.
Fee Will Affect Thousands of IT Workers and Companies in India
Bappa Sinha, a senior IT professional and activist, called the move coercive. He told Peoples Dispatch that it is “aimed at Indian IT workers and companies” and “will severely disrupt the careers of thousands of skilled professionals and the livelihoods of their families.”
The Communist Party of India (Marxist) also noted that the hike in the visa fees would “severely impact thousands of skilled professionals, disrupting their careers and affecting the livelihoods of their families” in India.
India was the largest beneficiary of the H-1B visa regime last year, with Indians receiving 71% of all such visas issued. China was second with only 11.7% share. Philippines, Canada, and South Korea were other major beneficiaries of the program with around 1% share each.
A large number of Indian tech companies such as TCS, Infosys, and Wipro prefer to hire Indians. However, the same is true about US firms such as Amazon, Microsoft, and Google.
A day after Trump’s announcement, the Ministry of External Affairs in India, in its official response, expressed grave concern, claiming the decision may disrupt the lives of many skilled Indian professionals and their families in the US.
The government of India also claimed that industries in both countries have stakes in innovation and creativity and pitched for “talent mobility”.
However, the official statement did not criticize the move explicitly and stopped by saying that it is studying the full implications of the move.
It’s a Pressure Tactic
Opposition parties in India called Trump’s announcement yet another sign of his belligerency towards the country. They termed the new H-1B visa fee a hard blow to India’s high-tech professionals.
The principal opposition party, the Indian National Congress (INC), called Prime Minister Narendra Modi “weak” for failing to take a strong position against the move.
The INC questioned the ruling ultra-right-wing Bharatiya Janata Party (BJP) which had previously claimed close ties with the US.
CPI(M) termed the “exorbitant hike” in visa fees to 100,000 USD a “bullying tactic.” It is “yet another example of the US using coercive tactics to further its own trade interests at the expense of other countries,” it said in a statement.
“This move comes on the heels of the imposition of 50% tariffs and the reimposition of sanctions on Iran’s Chabahar port, a project operated by India, is clearly designed to exert pressure on India just as bilateral trade discussions resumed,” CPI (M) said in the statement.
Sinha also agrees, claiming “the real aim is to arm-twist India in trade talks and undermine our foreign policy autonomy.”
Trump imposed a 25% tariff on Indian goods in August, later imposing 25% extra tariffs as penalty for India buying oil and gas from Russia while trade talks are still ongoing between the two countries.
Last week, it withdrew the exemption from sanctions on Iran given to operations from its Chabahar port, mostly affecting the Indian investments there.
Last week, Trump also included India in the list of countries identified as major hubs of illegal drugs along with Afghanistan and Pakistan.
“These actions amount to bullying, intended to force India to yield to unfair US tariff related demands,” CPI (M) said in the statement.
The statement demanded that India “must refuse to succumb to US pressures and act decisively to defend the rights and interests of Indian people.”
Sinha also demanded that “India must not remain silent. The government must firmly take this up at the diplomatic level and defend our workers.”
However, he also argued that “domestically, this is a wake-up call” for India as it “must end overdependence on exporting cheap IT labor and instead build a self-reliant digital economy that creates secure, quality jobs at home.”
Courtesy: Peoples Dispatch
US President Donald Trump announced on Friday, September 19, that all new applicants for the country’s H-1B visas will have to pay a minimum fee of 100,000 US dollars. The new fee took effect at midnight of Sunday, September 21.
The existing fee for an H-1B visa was between 2,000 US dollars and 5,000 US dollars.
Millions of foreign citizens working in the US on temporary work visas called the H-1B. Most H-1B holders are working in high-tech companies or in high-skilled jobs, such as doctors, professors, among others.
However, the Trump administration has claimed the program has been misused by the employers to suppress wages and discriminate against the local employees.
As per the executive order signed by Trump, “some employers have abused the H-1B statute and its regulations to artificially suppress wages, resulting in a disadvantageous labor market for American citizens.”
Though the high fees will make it difficult for employers to hire foreign workers, the Trump administration claims that it does not want to abolish the program, given its potential to invite foreign talent.
The US Secretary of Commerce Howard Lutnick claimed that the move to hike the fees does not hamper the H-1B program, rather it should correct its misuse as the program should only attract “extraordinary people at the very top.”
“If you are going to train somebody, you are going to train one of the recent graduates from one of the universities across our land. Train Americans. Stop bringing in people to take our jobs,” Lutnick was also quoted saying by Reuters.
Fee Will Affect Thousands of IT Workers and Companies in India
Bappa Sinha, a senior IT professional and activist, called the move coercive. He told Peoples Dispatch that it is “aimed at Indian IT workers and companies” and “will severely disrupt the careers of thousands of skilled professionals and the livelihoods of their families.”
The Communist Party of India (Marxist) also noted that the hike in the visa fees would “severely impact thousands of skilled professionals, disrupting their careers and affecting the livelihoods of their families” in India.
India was the largest beneficiary of the H-1B visa regime last year, with Indians receiving 71% of all such visas issued. China was second with only 11.7% share. Philippines, Canada, and South Korea were other major beneficiaries of the program with around 1% share each.
A large number of Indian tech companies such as TCS, Infosys, and Wipro prefer to hire Indians. However, the same is true about US firms such as Amazon, Microsoft, and Google.
A day after Trump’s announcement, the Ministry of External Affairs in India, in its official response, expressed grave concern, claiming the decision may disrupt the lives of many skilled Indian professionals and their families in the US.
The government of India also claimed that industries in both countries have stakes in innovation and creativity and pitched for “talent mobility”.
However, the official statement did not criticize the move explicitly and stopped by saying that it is studying the full implications of the move.
It’s a Pressure Tactic
Opposition parties in India called Trump’s announcement yet another sign of his belligerency towards the country. They termed the new H-1B visa fee a hard blow to India’s high-tech professionals.
The principal opposition party, the Indian National Congress (INC), called Prime Minister Narendra Modi “weak” for failing to take a strong position against the move.
The INC questioned the ruling ultra-right-wing Bharatiya Janata Party (BJP) which had previously claimed close ties with the US.
CPI(M) termed the “exorbitant hike” in visa fees to 100,000 USD a “bullying tactic.” It is “yet another example of the US using coercive tactics to further its own trade interests at the expense of other countries,” it said in a statement.
“This move comes on the heels of the imposition of 50% tariffs and the reimposition of sanctions on Iran’s Chabahar port, a project operated by India, is clearly designed to exert pressure on India just as bilateral trade discussions resumed,” CPI (M) said in the statement.
Sinha also agrees, claiming “the real aim is to arm-twist India in trade talks and undermine our foreign policy autonomy.”
Trump imposed a 25% tariff on Indian goods in August, later imposing 25% extra tariffs as penalty for India buying oil and gas from Russia while trade talks are still ongoing between the two countries.
Last week, it withdrew the exemption from sanctions on Iran given to operations from its Chabahar port, mostly affecting the Indian investments there.
Last week, Trump also included India in the list of countries identified as major hubs of illegal drugs along with Afghanistan and Pakistan.
“These actions amount to bullying, intended to force India to yield to unfair US tariff related demands,” CPI (M) said in the statement.
The statement demanded that India “must refuse to succumb to US pressures and act decisively to defend the rights and interests of Indian people.”
Sinha also demanded that “India must not remain silent. The government must firmly take this up at the diplomatic level and defend our workers.”
However, he also argued that “domestically, this is a wake-up call” for India as it “must end overdependence on exporting cheap IT labor and instead build a self-reliant digital economy that creates secure, quality jobs at home.”
Courtesy: Peoples Dispatch
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