The real impact of Trump?s H-1B visa ban on IT Stocks
US President Donald Trump ordered on Jun 22 banning non-immigrant visas such as H-1B and L-1 till December and also extended the ban for issuance of Green Cards till the end of 2020.
The proclamation bans the entry of foreign nationals, including Indians, through skilled worker visas such as H-1B, L-1/L-2, unskilled temporary worker visa H-2B and J visa reserved for scholars, professors and exchange students.
The ban will be effective from June 24 to December 31. This is also applicable for the immigrant visas that are initially banned for 60 days.
The order will not impact:
- those who are already in the US with the valid non-immigration visa
- those already in the US.
However it will impact foreign nationals, including Indians,
- who are applying for a fresh visa
- those in India with valid skilled worker visas such as H-1B, L-1/L-2 as they will not be allowed entry into the US till the ban is in place.
those applying for Green Cards from outside the country.
How it will India?
- It will have a noteworthy impact on Indians given that we are the biggest beneficiaries of the visa.
- There are about 4 lakhs H-1B and 1 lakh L-1 Indian visa holders in the US employed in several tech and IT firms.
- Companies such as TCS, Infosys, Wipro and Cognizant are the biggest beneficiaries of the visa.
- Prolonged ban will have an impact on the IT supply chain in the US as these companies will not have the ability to move resources at the back of the ban. This will also impact the fresh application of visa and also those with valid visa travelling to the US.