Prime Minister Narendra Modi, in a Twitter post this week, said he had shared his concerns over the proposed legislation with President Barack Obama during a phone call between the two leaders.
“The President and Prime Minister each underscored the importance of implementing the agreement and working together in the future on climate change, including through the Mission Innovation initiative announced in Paris on November 30”, the readout said.
The bipartisan bill, which prescribes special fees of $4,000 and $4,500 for H1B and L1 visas, respectively, will mostly affect Indian IT companies that depend heavily on professionals sourced from India.
Expecting that this provision would generate greater than $ 1 billion every year, the invoice says that after $ 1 billion is deposited for 9/eleven first responders and the Biometrics Ext account, the remainder of the cash can be deposited within the basic fund of the Treasury.
“US doubled the visa cost to $4,000 for H-1B and other categories of visas, causing substantive cost hardships to the Indian IT industry”, said Jimeet Modi, CEO, SAMCO Securities.
Replying to a query on the impact on IT/ITeS (IT-enabled services) companies operating out of Chennai, which has been ravaged by floods, Mr Reddy said the effect would be limited.
The bill has been written in such a way that it would impact only Indian companies.
Though the lawmakers behind the bill described it as a temporary provision, the new H1B and L1 visa fee increase is for a period of 10 years as against a previous provision of five years. The $2,000 fee was first adopted in 2010 and expired on September 30.
Murthy further said: “These are issues that need to be discussed and I have no doubt at all that value of Indian IT services industry is so high to the United States corporations that some of these issues will not come in the way of the growth of the Indian IT industry”.
The bill delivers funding to compensate those whose lives were impacted by the 9/11 attack on the World Trade Centre in NY. Given that, the brand new punitive measure is predicted to increase between $ 1.4 billion and $ 1.6 billion yearly for the subsequent one decade.