WASHINGTON (AP) – The U.S. and India seem like a natural fit in the Trump era: rambunctious democracies, led by populists, focused on economic growth and fighting radical Islam. It’s a budding partnership that could be set back by a nuts-and-bolts dispute over employment visas.
As President Donald Trump looks to help American workers, his administration is considering a broad review of a visa program used heavily by India’s massive technology and outsourcing industries to send programmers and other computer specialists to the United States.
Speculation about tougher rules on so-called H-1B visas sent tech stocks tumbling in India last week, and compounded concerns about the protectionist direction of U.S. policy after Trump temporarily suspended immigration from seven Muslim-majority countries.
The technology sector is vital for India’s economy and creating jobs for a fast-growing, young workforce – a top priority for Hindu nationalist Prime Minister Narendra Modi. America is the main customer: It accounted for more than 60 percent of India’s $108 billion in foreign tech and outsourcing sales last year, according to the National Association of Software and Service Companies, an Indian industry lobby group.
“There is a general sense of anxiety in the industry,” said Dipen Shah, an IT analyst at Kotak Securities in India. He said it seemed likely that the cost of hiring people on H-1B visas would increase, hurting tech companies’ bottom lines.