Ans:-
The policies of a government will always depend on its domestic compulsions. Thus the US decision to increase the fee of H1B and L1 visa, which is being accused of giving American jobs to foreigners is hardly a surprise for India. Especially when the Republican party is feeling the heat of presidential election to be conducted in 2016.
Movement of labour freely is one of the essential principles of Globalization, the biggest proponent of which is US himself. As the fee hike is IT sector specific and India being the largest exporter of IT professionals to US, the move is definitely going to affect the Indian IT companies in US. So the following measures could be taken by the Indian govt to address the situation.
Measures-
Short term- Take US to WTO, and prove that Indian companies discriminatively targed.
Long term- Sign a “Model agreement on Visa” with US govt, on the similar lines of “model agreement on exemption from visa for diplomatic travel” the Indian govt is presently working on. This will ensure that the US govt is not only guided by domestic compulsion but also Indian concerns are taken into account. Such an agreement should be brought against a bargain to increase FDI in any of Indian sectors, which would give us additional leverage in discussions.
The policies of a government will always depend on its domestic compulsions. Thus the US decision to increase the fee of H1B and L1 visa, which is being accused of giving American jobs to foreigners is hardly a surprise for India. Especially when the Republican party is feeling the heat of presidential election to be conducted in 2016.
Movement of labour freely is one of the essential principles of Globalization, the biggest proponent of which is US himself. As the fee hike is IT sector specific and India being the largest exporter of IT professionals to US, the move is definitely going to affect the Indian IT companies in US. So the following measures could be taken by the Indian govt to address the situation.
Measures-
Short term- Take US to WTO, and prove that Indian companies discriminatively targed.
Long term- Sign a “Model agreement on Visa” with US govt, on the similar lines of “model agreement on exemption from visa for diplomatic travel” the Indian govt is presently working on. This will ensure that the US govt is not only guided by domestic compulsion but also Indian concerns are taken into account. Such an agreement should be brought against a bargain to increase FDI in any of Indian sectors, which would give us additional leverage in discussions.
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