US H-1B visa curbs will hurt Indian talent more than IT companies, says Nilesh Shah of Kotak Mahindra AMC

As the US tightens its immigration policies, concerns are growing over the impact on Indian professionals, particularly those from the IT sector, who are seeking opportunities abroad.

Nilesh Shah, MD of Kotak Mahindra AMC, says, “US restrictions on H-1B visas will hurt Indians more than Indian IT services companies. We have to create an ecosystem in India so that our talent doesn't have to go abroad. Hand-cuffing Korean workers, abruptly changing the H-1B visa kind of steps will have adverse effects on the US economy over a period of time."

His warning comes at a time when the US is tightening rules around the H-1B programme, which allows skilled foreign professionals, many of them Indians, to work in America.

Donald Trump, the president of the US, has just confirmed the worst fears of India's IT services sector and the Indian diaspora at large. On Friday, the US administration announced that companies will have to pay $100,000 for each new H-1B visa.

Although there was some uncertainty about whether the fee was annual or a one-off, the White House press secretary clarified that it only applies to new visas, not to renewals or existing ones.

The new proclamation requires a payment of $100,000 annually for new H-1B visa petitions for non-immigrant H-1B.

However, the Secretary of Homeland Security can also make exemptions to hiring under H-1B specialty if it serves the national interest of the US. Employers will now have to keep records of such payments before filing an H-1B petition, and even the renewals of H-1B will undergo greater scrutiny.

Within 30 days of the H-1B lottery's completion, the Secretary of State, Attorney General, Secretary of Labour, and Secretary of Homeland Security must submit a recommendation to President Trump on whether to extend or renew the entry of visa holders.