Going to USA

H-1B visa: Nasscom writes to US Senators

India and its industries are strong proponents of building people-to-people relationship further, in a mutually beneficial way

Wednesday, May 30, 2007

NEW DELHI, INDIA: Nasscom, the premier trade body of the IT software and services industry in India, today sent a letter on behalf of the nine Indian companies to Senators Durbin and Grassley, addressing the issues raised by them in their letter of May 14 2007 (addressed to nine Indian IT companies) about reported fraud and abuse of the H-1B visa program, and its impact on American workers.

 
 

A Nasscom release said its response represented the viewpoint of those nine Indian companies and the industry. The letter assured the Senators of support and co-operation by Nasscom and its member companies on the larger issue of visa fraud and also echoed the Senators' belief that any fraudulent activity should be dealt with in the strictest possible manner.

 
 

It highlighted that H-1 B visas are beneficial to both, US and Indian companies, and also to the US economy. It also draws attention to the fact that many US industry leaders have repeatedly stressed the need to raise the H-1B visa cap, which was reduced from 195,000 to 65,000 two years ago.

 
 

On the linkage between layoffs and the H-1 B visa, the letter notes that these two do not seem to go hand in hand as exhibited through the 2006 survey by Money Magazine.

 
 

The letter also iterated that while the number of H-1B visas is currently very limited (currently capped at 65,000 a year), the H-1B visa is not limited to the IT sector nor to Indians alone.

 
 

In fact of the H-1 B visas granted in the year 2006, nearly 14,000 (more than 20 per cent) visas were granted to American educational institutions.

 
 

Among other significant areas of note, one at a broader level is addressing the mistaken belief that US-India trade was flowing primarily in one direction.

 
 

As has been recognized widely, India was a major buyer of a whole host of US goods and services, including aircraft, wheat, branded garments and accessories, etc.

 
 

An overwhelming majority of the computers and software used by India's IT industry as also other sectors of the economy are those produced by US companies like HP, Dell, Microsoft, Oracle, etc.

 
 

The largest outsourcing contracts from the Indian private sector, as also from the Indian government, had gone to US companies. The rapidly growing Indian economy was importing ever-larger quantities of these goods and services.

 
 

Meanwhile, Indian students now formed the biggest group of foreign nationals studying in the US universities, spending an estimated $ 3 billion a year.

 
 

"These indicators of a growing trade relationship complement the excellent political and people-to-people relationship that exists between our two countries," Nasscom said.

 
 

The above instances indicated, very clearly that India, and its industries "are strong

 
 

proponents of building this further, in a mutually beneficial way."

 
 

The Nasscom letter also called for attention to the fact that there was a considerable body of evidence pointing to the contributions made by H-1B visa holders to innovation and entrepreneurship in the US, which had resulted in job creation on a scale that was anecdotally well known and widely-recognised, even though it had not been properly quantified.

 
 

"These contributions have come from nationals of many countries, who have worked in the US under this visa programme; needless to say, the Indian IT industry and Nasscom are particularly happy to note the contribution made by Indians," the letter stated.

 
 

It further said that H-1 B visa holders were paying taxes, social security and making significant contributions to the local and national economy. Additionally, in the past two years, to combat potential fraud in H-1B and L-1 visas companies had paid more than $300 million in government-imposed fees to fund a State Department/DOL/DHS effort.

 
 

The Nasscom letter particularly drew attention to the specific clause in the

 
 

Immigration Bill, which had been introduced by the two Senators that "prohibits

 
 

companies from hiring H-1B employees if they employ more than 50 people and more than 50 per cent of their employees are H-1B visa holders".

 
 

Nasscom said it and the Indian IT industry "clearly see this as a protectionist measure that will affect Indian IT companies, reduce the number of H1- B holders going to the US and reduce the competitiveness of the IT industry in the US."

 
 

In conclusion, the letter noted that knowledge-based services trade had been a unique feature of India-US trade and Nasscom and the industry hoped that the US would not specifically penalize non-US firms and continued to promote free and fair trade, so that this sector could continue to flourish as part of a broader US-India engagement.

 
 

Nasscom also offered to meet the Senators to discuss the issue.