BARACK OBAMA: BORDER SECURITY BILL
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Please, find better ways '
'to secure the borders than increasing visa charges!
After being passed by the US Congress, the much-touted Border Security Bill was signed by the President Barack Obama. The bill will strengthen security along the border with Mexico and address the ongoing problem of illegal immigration.
The $600-million bill will fund necessary law enforcement equipment and cover expenses of newly-recruited officials. But before the bill could come into effect, there were several protests and dissent across the globe. Since the bill will be funded through charging higher visa charges from foreign companies operating in the US, many Indian companies showed their agitation over it. Most of Indian IT companies have their operations in the US and they collectively apply for more than 50,000 visas every year. The sudden rise in application fee for H-1B and L-1 visas, by at least $2,000 for the next five years, would hit the operations of Indian IT companies to a very large extent, as Indian IT export industry earns over 50 per cent of its revenue from the US market. However, this is not for the first time that a move or statement by Obama will affect Indian IT or for that matter outsourcing business in India and sub-continent.'
Even in his first state of the union address, on January 27, 2010, Obama announced that the tax breaks that Indian companies get would be discontinued and said, 'It is time to finally slash the tax breaks for companies that ship our jobs overseas, and give those tax breaks to companies that create jobs right here in the USA'' On the same lines, this move of Obama will not only increase the operations cost of Indian firm but will also deter Indian investment in US.
The H-1B and L-1 visa application already costs around $2000-2500; and an increase of $2000 as filing and fraud prevention and detection fees will ensure more per capita cost on temporary skilled workers sent to the US for work from India and subcontinent. As per trade body NASSCOM, the impact on the Indian IT sector could be as high as $200-250 million per year.'
Further, the bill may not be acquiescent with WTO as the state department spokesman put it defensively, "We are reviewing a suggestion that this bill is not WTO-compliant. I am not aware that we've reached any final judgment, but we're not sure that necessarily any WTO issues are triggered."
Interestingly, a report titled 'Regaining America's Competitive Advantage: Making our Immigration System Work' made by the US Chamber of Commerce and a popular think-tank called American Council on International Personnel suggested that far from restricting foreign workers, the US should eliminate the cap on H1B visas and allow the market to determine the overseas workers entry into the country. The US President Barack Obama and his government definitely understand already that it is this capability (of the US) to absorb highly skilled foreign employees that is the prime reason behind America's competitiveness and its position as a top superpower. It's surprising that knowing all that very well, they would still allow such a move to curb the flow of skilled technicians and experts that could, in the long-run, dent America's intellectual capital and international business competitiveness.
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INDIA'S BEST COLLEGES, INSTITUTES and UNIVERSITIES
Please, find better ways '
'to secure the borders than increasing visa charges!
After being passed by the US Congress, the much-touted Border Security Bill was signed by the President Barack Obama. The bill will strengthen security along the border with Mexico and address the ongoing problem of illegal immigration.
The $600-million bill will fund necessary law enforcement equipment and cover expenses of newly-recruited officials. But before the bill could come into effect, there were several protests and dissent across the globe. Since the bill will be funded through charging higher visa charges from foreign companies operating in the US, many Indian companies showed their agitation over it. Most of Indian IT companies have their operations in the US and they collectively apply for more than 50,000 visas every year. The sudden rise in application fee for H-1B and L-1 visas, by at least $2,000 for the next five years, would hit the operations of Indian IT companies to a very large extent, as Indian IT export industry earns over 50 per cent of its revenue from the US market. However, this is not for the first time that a move or statement by Obama will affect Indian IT or for that matter outsourcing business in India and sub-continent.'
Even in his first state of the union address, on January 27, 2010, Obama announced that the tax breaks that Indian companies get would be discontinued and said, 'It is time to finally slash the tax breaks for companies that ship our jobs overseas, and give those tax breaks to companies that create jobs right here in the USA'' On the same lines, this move of Obama will not only increase the operations cost of Indian firm but will also deter Indian investment in US.
The H-1B and L-1 visa application already costs around $2000-2500; and an increase of $2000 as filing and fraud prevention and detection fees will ensure more per capita cost on temporary skilled workers sent to the US for work from India and subcontinent. As per trade body NASSCOM, the impact on the Indian IT sector could be as high as $200-250 million per year.'
Further, the bill may not be acquiescent with WTO as the state department spokesman put it defensively, "We are reviewing a suggestion that this bill is not WTO-compliant. I am not aware that we've reached any final judgment, but we're not sure that necessarily any WTO issues are triggered."
Interestingly, a report titled 'Regaining America's Competitive Advantage: Making our Immigration System Work' made by the US Chamber of Commerce and a popular think-tank called American Council on International Personnel suggested that far from restricting foreign workers, the US should eliminate the cap on H1B visas and allow the market to determine the overseas workers entry into the country. The US President Barack Obama and his government definitely understand already that it is this capability (of the US) to absorb highly skilled foreign employees that is the prime reason behind America's competitiveness and its position as a top superpower. It's surprising that knowing all that very well, they would still allow such a move to curb the flow of skilled technicians and experts that could, in the long-run, dent America's intellectual capital and international business competitiveness.
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM BBA MBA Institute: Student Notice Board
IIPM Prof Rajita Chaudhuri's Snaps
Arindam Chaudhuri: Movie time for Kapil Sibal
Delhi University Students' Union (DUSU): Students' Unions can not be banned
The hunt for hostel and paying guest (PG) accommodation for students
INDIA'S BEST COLLEGES, INSTITUTES and UNIVERSITIES
Labels: Barack-Obama, IIPM, US
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