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The Indian information technology industry is unlikely to get any early respite from the steep selective increase in short-term visa fees for professionals instituted by the US last December.
Washington has informed New Delhi that reversing a decision that is part of its Omnibus Bill is not possible.
According to a Commerce Ministry official, Deputy US Trade Representative Robert Holleyman, during his recent visit to India, told the Ministry that once a policy is part of the appropriation bill (or Omnibus Bill), it has to run its full course and the decision cannot be terminated mid-way.
India will take up the matter urgently at the strategic and commercial dialogue scheduled between the two countries in New Delhi on August 30-31.
WTO optionIf the matter is not resolved through bilateral talks, approaching the dispute settlement panel of the World Trade Organization (WTO) could be India’s only option, added the official.
“We have to try out best to convince the US to have a re-think on the visa issue at the strategic and commercial dialogue, where our top leaders will meet. But if they continue to maintain this posture, the only way to safeguard the interests of our IT industry operating in the US would be through dispute resolution at the World Trade Organization,” the official told BusinessLine
The US-India strategic and commercial dialogue will be attended by US Secretary of State John Kerry and Secretary of Commerce Penny Pritzker. Commerce Minister Nirmala Sitharaman and External Affairs Minister Sushma Swaraj will represent India.
Omnibus BillLast December, US President Barack Obama signed the Omnibus bill with a $1.8-trillion spending package that introduced a hefty $4,000 fee for certain categories of the H-1B visa and $4,500 for the L1 visa. The package is till 2025, so the higher fees will stay till then.
Since the fee hike is only for those companies that employ more than 50 workers and more than half of the employees are foreigners, Indian IT companies, such as Infosys and Wipro, are at the receiving end.
As per estimates by IT body Nasscom, the move will cause losses of $400 million annually to Indian companies.
India filed a case against the US move at the WTO earlier this year, but has not yet asked for a dispute settlement panel to be set up as it was hoping that the matter could be settled through bilateral discussions.
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