The proposed changes in the regime for issuing H-1B visas for skilled workers by the US government will have an impact on Indian companies and the Commerce Ministry will soon hold a meeting with the industry to discuss its strategy for dealing with it, Commerce Minister Nirmala Sitharaman has said.

The Minister added that the changes that could have financial implications, such as doubling the minimum wage requirement, can be brought about only through Congressional approval and not executive order, indicating the government had time to take a calibrated decision.

“There will be an impact on the Indian industry. As soon as Parliament session is over on February 9, I will hold a meeting with IT industry body Nasscom and industries having significant presence in the US to discuss what their strategy is to deal with the matter,” Sitharaman said addressing a press conference on Monday.

The Minister pointed out that since all major decisions of financial implications related to norms for H-1B visas that were being considered in the US may have to wait for Congressional approval as they can’t be taken through an executive order, the government’s reaction has to be nuanced. “The issue is layered. We will decide how to tackle it together with the Ministry of External Affairs. We are also constantly in touch with our Embassy and Consulate Office in the US,” she said.

What is of most concern to Indian companies are two legislative bills — one which proposes doubling the minimum wage rate for H-1B visas to $1,30,000 from the present $60,000 and the other which proposes disallowing companies with more than 50 employees, of which at least half are H1B or L1 holders, from hiring additional H1B employees.

Indian IT companies such as TCS, Infosys and Wipro generate an estimated $ 65 billion worth of business in the US and tightening the leash on them could hurt large US companies like GE, Boeing, and Cisco who do considerable business with India.

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