Trump’s visa curbs strike Indian IT sector
The performance of information technology sector has always made India proud. This sector alone was able to get millions of Indians employed and help our country with its economic advancement.
Now the sector has been shaken by the new visa policies promulgated by the U.S. President Donald Trump. The restrictions imposed on the work visa policies are beginning to thwart the progress and profit the various Indian IT companies. The visa reform has caused a drastic decline in the net worth of the billionaire technology tycoons.
All the founders of the various IT industries are witnessing a drastic drop in their net worths. Everyone from The Czar of the Indian IT industry Azim Hashim Premji to Narayana Murthy and Nandan Nilekani, two of the five founders of the Infosys Ltd, have been severely affected by this act of Mr. Trump. Even the sixth-richest person and the chair person of HCL Technologies Shiv Nadar is experiencing dwindle in his shares.
Sumeet Jain and Saurabh Thadani, analysts from Goldeman Sach, said in a research note last week that Infosys is highly likely to be at the peak of danger. The policies are going to show a substantial impact on this company, for this company has more workers from other countries than the local American ones. Despite being affected by the new visa policies, HCL and Wipro appear to be on the safe side, as they employ more local workers than the foreign ones.
The HB-1 visa programme allows companies to bring employees from other countries to the U.S.A.. Hiring foreign workers is not as expensive as hiring the local ones. But when some restrictions on this visa were announced by Mr. T rump on 31st of March, it became extremely difficult for the companies to bring workers from overseas.
The reason behind this action is that Mr. Trump believes that the influx of foreign workers may create a dearth of jobs and opportunities for the local Americans. In addition to this, the Justice Department of America too has warned the employers of several companies to be unbiased towards employing local Americans. This act is seen as the fulfilment of Mr. Trump’s promises that he made during his presidential campaign.
All these together have become a great problem for the Indian economy, as this could damage the profit margin of the Indian IT industries. Now the companies have to hire the local Americans which is way more expensive than hiring those from overseas
On the other hand, many other nations to have decided to follow this act of Mr. Trump, changing the fate and future of Indian IT industries. Meanwhile the affected leading companies have decided to stay calm despite the losses they incurred.
Commenting on this, DD Mishira, a Pune-based research director at Gartner, said that what is worrying the companies is the doubt whether these changes are a precursor for more radical measures.