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Encouraged by President Barack Obama’s move to relax immigration rules for the skilled, India will ask the US to ensure that the additional visa fees imposed under a Border Security law on professionals hired by its IT companies is not extended beyond 2015.
In her forthcoming meeting with US Trade Representative (USTR) Michael Froman as part of the US-India Trade Policy Forum this week, Commerce and Industry Minister Nirmala Sitharaman will also press for implementation of a long-pending social security agreement and dropping certain parts of the Visa Reforms Act.
The Act, being debated by US Congress, if implemented in its current form, will make the going even tougher for Indian IT companies, a Government official told BusinessLine .
The US, on the other hand, will press for a tightening of India’s intellectual property rules. “A separate meeting has been scheduled on IPR issues where senior officials from the US will discuss matters related to grant of compulsory licences and provisions in the Indian patent laws that prevent ever-greening of patents,” the official said.
New Delhi will maintain that its laws are in strict conformity with international trade rules. Froman and Sitharaman will meet on Tuesday, while two preparatory meetings between senior officials, one on IPR and the other on investments, will happen on Monday.
“Indian IT companies such as Infosys and Wipro contribute tremendously to the US economy and the Minister will ask for all hiring restrictions to be eased,” the official said.
Border Security ActThe US has already extended the provisions of the Border Security Act, which was to lapse on September 30, 2014, till 2015.
It almost doubled the visa fees for professionals (under H1B and L1 categories) to $4,500, for companies in which foreigners exceed 50 per cent of the workforce.
New Delhi will demand that the provisions are not extended beyond 2015 as it imposes a heavy burden on the IT companies.
The USTR will also be urged to drop the controversial provisions of the Immigration Bill, being considered by US Congress.
The provisions could lead to heavy penalisation of Indian IT companies that recruit a large number of Indians for their US operations.
Social securityIndia will also press the US to move forward on concluding a totalisation or social security agreement that will allow professionals on short-term visas not to contribute towards social security.
Sitharaman will make a case for lowering of testing requirements on mangoes by allowing Indian or US agencies in India to carry out tests for fruit flies.
“By allowing inspections to happen in India, price of Indian mangoes will be significantly lowered in the US market, and making them affordable,” the official said.
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