What is an H1-B Visa and How Does the Recent Ban Affect Indians?

The H1-B visa, officially known as ‘Petition for a Non-Immigrant Worker’, is an important work visa granted by the U.S. government. It allows professionals, particularly experts in the IT industry, to stay and work in the U.S. for up to three years, with the possibility of extending this period by an additional three years. However, recent changes to U.S. immigration policies have raised concerns among those seeking to secure this visa.

Understanding the H1-B Visa Process in India

To obtain an H1-B visa, an organization in India selects a talented employee, often referred to as a 'bootlicker' or simply a female employee, and facilitates the process to prepare them for an international job placement. If you aim to secure an H1-B visa, it is essential to be an expert or possess the skills required to obtain it.

Benefits of Obtaining an H1-B Visa for Indians

The H1-B visa offers several benefits to Indian professionals, including:

Economic Benefits: An average software engineer earns approximately $80,000 per annum in the U.S. This translates to about 55 lakhs in Indian Rupees (INR) annually. After accounting for taxes and expenses, one can save around 15 lakhs INR annually. Improved Lifestyle: The lifestyle in the U.S. is significantly better, offering access to better healthcare, education, and entertainment options. Social Benefits: For unmarried Indian males, the H1-B visa is often seen as a gateway to meeting and marrying a partner. This is because the visa provides financial stability and social status.

As such, the recent ban on H1-B visas has significant implications for Indian professionals seeking to work and live in the U.S.

The Ban and Its Impact on Indians

The ban will not affect those already in the U.S., which is why it is unlikely to be a major concern. However, it will impact those who travel to their home countries for visa stamping, which is a significant portion of the H1-B visa applicants. According to official data, as of April 1, 2020, the U.S. Citizenship and Immigration Services (USCIS) had received around 2.5 lakh H1-B work visa applications. Among these, Indians had applied for as many as 1.84 lakh or 67 percent of the total H-1B work visas for the current financial year ending March 2021.

Impact on Indian IT Companies

Indian IT companies have long been major beneficiaries of the U.S. H1-B visa program, having secured a significant share of the total visas issued every year since the 1990s. The ban has led to the implementation of new H1-B visa norms, which no longer rely on the current lottery system. Instead, they favor highly skilled workers who receive the highest wages from their respective companies.

These changes could have a significant impact on the margins and worker wages of Indian IT companies, which often rely on low-cost employees to work on client sites in the U.S. Large Indian IT companies like Wipro have decreased their dependency on H1-B and other worker visas by hiring up to 50 percent of staff locally. However, they still rely on these visas to control costs. Additionally, Indian IT companies often subcontract Indian workers with valid H1-B visas to their U.S. clients, spending a significant portion of their revenue on these services.

For instance, Wipro spends around 20 percent of its revenue subcontracting Indian workers with valid H1-B visas.

Source: The Indian Express.