H-1B Visa News: Indian IT shares, who have a large stake in the US market, were under heavy pressure when President Donald Trump on Friday signed an announcement to impose an annual fee of $ 100,000 on H-1B visas. The Trump administration’s decision to increase the annual fee of H-1B visa will make it expensive for IT companies to appoint Indian IT professionals. This decision of the Trump government is part of a major change in its immigration rules.
When there were reports that US President Donald Trump was about to sign an order to impose a $ 100,000 fee for H-1B visa applications, Infosys shares declined by 4.5 per cent on Friday, 19 September. Tamam, including Infosys, is one of the biggest users of Indian IT companies H-1B visa. They usually appoint efficient employees of India in their American projects. But this new fee will become a direct threat to the cost-saving models of companies.
The shares of other tech companies also witnessed a decline in the trading session of Friday. Cognizant technology shares were broken by 4.3 per cent. While Accenture shares fell 1.3 per cent and Wipro’s shares fell by 3.4 per cent.
The White House has been announced to control the entry of foreign nationals in the US under the H-1B category. H-1B is used to appoint skilled professionals in special businesses. Payment of US $ 100,000 with each application of H-1B has become mandatory. Companies making such appointment will now have to keep evidence of payment, which will be confirmed by the Foreign Minister during the visa process.
Lutenik supported action on H-1B visa
Announcing the move in the Oval office, Trump said that heavy duty would sure that only “extremely skilled” people should be brought into the country. This will prevent companies from bringing cheap foreign employees instead of American employees. Signing the manifesto in the presence of US Commerce Secretary Howard Lutenik, the President said, “We need employees. We need excellent employees and this step ensures that it will happen.”
Lutenik further said that the move would bring more than $ 100 billion to the US treasury. This money will be used to reduce tax and reduce debt. He said, “Either that person will be very valuable for the company and the US, or it will leave the company and the company will place an American in his place. That is the purpose of immigration -hiring Americans and make sure that the people coming to the US are of the top level.”
Indian IT companies will have a big impact
This new move will affect Indian IT companies the most, as they are among the biggest users of H-1B visa. The H-1B visa program provides employment for three years in the US, which can also be extended for three years. It has been a big way for Indian technical workers to go to America.