Ban on H1B visas Confirmed by President Trump: How it will impact the Indian IT sector

Ban on H1-B Visa

The US H1-B Visa is a non-immigrant visa that allows US companies to recruit graduate-level staff according to their skills in various sectors like IT, Finance, Accounting, Architecture, and Medicine, etc. 

However, The US Administration on Tuesday said that they are extending the BAN on H1-B Visas till the end of 2020 (i.e., an extension of 60 day Ban). “The White House said in a press note that popular Work Visas like H1-B. H2-B, and H-4, J, and L also suspended until the end of 2020.

“This decision was taken to support domestic workers who had been impacted by the CoViD-19 Pandemic.” US President Donald Trump said.

Why did the US suspend Non-Immigrant workers?

It was all started in 1952, this H1-B visa scheme has many changes according to the economic situations in the country. They have changed in the categories to allow or disallow the skilled workers in the US.

We all know H1-B visas are the most popular among Indian IT Companies. The US Government has a limit of 85,000 H1-B Visas per year. Along with H1B’s, the US Government allows L1 Visas which is useful for companies to transfer highly skilled workers up to 7years.

US President Donald Trump indicated to broke this H1-B visa system as it is affecting the domestic workers in the country. And the consequences followed by COVID-19, Government took this chance and banned the visas providing to non-immigrant workers till June 23 initially, now it is extended to December 31.

Impact of Banning Non-Immigrant Visas

Since the ban is taking effect right now, the handling of all new H-1B, H-2B, J, and L visa classes are suspended. The individuals who don’t have a substantial non-immigrant visa as of June 23, and are outside of the US, won’t be permitted to enter the nation until December 31. Laborers in basic administrations in the food segment have been given some respite, and their entry should confirm by Immigration officials.

All the Visa holders, and their relatives who are already in the US won’t impact by this new order.

How does it Impact Indian IT Companies?

Indian IT organizations are among the greatest recipients of the US H-1B visa system and have since the 1990s cornered a lot of the all outnumber of visas gave every year. 

As of April 1, 2020, the US Citizenship and Immigration Services (USCIS) had gotten about 2.5 lakh H-1B work visa applications, as per official information. Indians had applied for the same number of as 1.84 lakh or 67 percent of the absolute H-1B work visas for the current monetary year finishing March 2021. 

Aside from the suspension of these work visas, Trump has also rolled out clearing improvements to the H-1B work visa standards, which will never again be chosen by the present pervasive lottery method. The new standards will currently support profoundly skilled/specialists who are paid the most high-priced wages by their separate organizations.

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