US President Donald Trump’s decision to temporarily suspend immigration could hurt Indian IT companies which are already under pressure due to the Covid-19 pandemic.
This development comes even as the US Citizenship and Immigration Services (USCIS) which last week gave its nod to extend H1-B visas that have expired or set to expire. H1-B is a non-immigrant visa but offers a path to immigration.
Trump tweeted a few hours back that he intends to sign an executive order to temporarily suspend immigration to the “in light of the attack from the Invisible Enemy, as well as the need to protect the jobs of our great American Citizens.”
Such restrictions in the current scenario of weak revenue and higher local employees would have an impact in the short term, said an analyst from a brokerage house who did not wish to be quoted.
Companies like TCS, Infosys, HCL Tech, Wipro, Cognizant, Tech Mahindra and others are a part of the $191 billion software services export industry. Shares of Indian IT services companies were trading lower than yesterday's close after Trump tweeted his decision.