India discusses visa, IPR issues with US lawmakers

The Dollar Business Bureau

India on Monday discussed various issues that included intellectual property rights (IPRs) and proposed restrictions on H1B visa programme, with US lawmakers who are on a visit to the country.

These were the issues discussed during a 45 minute long meet between India’s Commerce and Industry Minister Nirmala Sitharaman and the 8-member delegation from the US in New Delhi.

India raised issues regarding restrictions on H-1B visa, which will have an adverse impact on the IT industry of India, whereas the US side raised matters related to IPR and copyright, according to sources.

In addition, both sides also deliberated upon the issue of market access for some specific agricultural products.

The US delegation is headed by Bob Goodlatte, Chairman of the Judiciary committee of House of Representatives. He will also meet Minister of Information Technology, Ravi Shankar Prasad.

The proposed changes in the popular regime of H-1B visa by Donald Trump administration has raised concerns amongst the Indian IT companies, as a slight change in the H-1B visa translates to higher operation costs and shortage in the availability of skilled workers for India’s outsourcing industry – which is valued around $110 billion.

The IT sector of India contributes around 9.3% to the country’s GDP (gross domestic product) and is one of the biggest private sector job creators, employing around 3.7 million people.

The US makes up nearly 62% of India’s IT exports, while the EU is the second largest market contributing about 28% of India’s IT services exports.

Recently, the US introduced a legislation (Lofgren Bill) which proposes to increase the minimum wages for holders of H-1B visa to $130,000. Currently, the minimum wages were $60,000, which were fixed in 1989 and remained unchanged since then.

Such protectionist measures by the US can also create more trouble for Indian IT companies which are already coping from currency fluctuations and cautious spending by the clients.