Everything seems well and good when it comes to the recent visit of Indian Prime Minister Mr Narendra Modi to the United States. However, Mr Modi has relaxed its visa rules by issuing 10-year visas for U.S. nationals, providing Person of Indian Origin (PIO) card holders lifelong-visas, and setting a system in place to allow visas on arrival for U.S. tourists, but he has missed an important clause in the present immigration reform bill, which was scripted by Gang of Eight members, passed in the Senate and stalled in House of Representatives.

If current immigration reform bill passes in the House, Indian service sectors, especially IT sector will suffer a lot. Why? What provisions can harm Indian companies? One of the major provisions is the ban on outplacement of H-1B visa holders if they form more than 15 per cent of a firm’s US workforce. Indian companies do send their employees to US to assist US clients on-site. Indian IT and ITES companies are also facing difficulties in getting a work permit. Indian corporates were expecting that this will be the core issue of discussion between Obama and Modi, but unfortunately it did not happen. It is notable that Indian companies send a sizable number of their employees to the United States to manage work and services for their US clients. This immigration reform bill, if passed as it is, can cause Indian companies to cut down on dispatching their employees to the client locations. It can reduce productivity.

Did India miss an opportunity to address this key issue, which can affect its one of the key sectors? If this bill passes in its current form, it will hinder the progress of an IT sector and also can lead to a impediment in business relations between the nations.

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