In US, attempts to tighten H-1B visa norms have long, bipartisan history, Pg13.

Key Highlights:

• The US administration introduced a $100,000 fee for new H-1B visas, raising concerns in the Indian IT industry.
• The September 19 proclamation aims to curb the use of H-1B visas to reduce labor costs by replacing US workers with foreign workers.
• There have been multiple attempts over the last decade in the US to regulate the use of H-1B visas through legislation and executive orders.
• In 2015, the H-1B and L-1 Visa Reform Act was proposed to deny H-1B visas to companies with over 50 employees if more than 50% of them had work visas.

Detailed Insights:

• The Indian IT sector earns a significant portion (60%) of its IT services revenue from the US market, making it sensitive to changes in US visa policies.
• The US administration believes that the H-1B visa program has been exploited by IT firms to replace American workers with lower-paid foreign labor.
• The share of IT workers in the H-1B program has increased from 22% in 2003 to over 65% in the last five years, with IT outsourcing companies being the most prolific employers.
• Past proposals included raising wages for high-skill jobs to $100,000 per year, making master's degrees mandatory for H-1B visas, and increasing the minimum wage for H-1B workers to $130,000.

Key Concepts Involved:

• H-1B Visa: A non-immigrant visa that allows US employers to temporarily employ foreign workers in specialty occupations.
• L-1 Visa: A visa that allows companies to transfer employees from a foreign office to a US office.
• IT Outsourcing: The practice of hiring a third-party company to perform IT services.