NEW US LAW Immigration Bill will Decimate Indian IT Cos

The much-beloved India Caucus in the US House of Representatives organised the first-ever Diwali celebration on Capitol Hill recently, but it has also quietly deposited a very inauspicious gift at India's door. It is called HR 15, a bill that if passed in its current form would essentially shut down Indian IT companies or so reduce their strength as to make them negligible. It is one of the most anti-India pieces of legislation. Of the 135 members of the India Caucus, 63 have not only supported the bill but also co-sponsored it in a measure of serious support. The Democratic co-chair of the India Caucus, Congressman Joseph Crowley of New York, is among them. So far, 187 Congressmen are on board, including three Republicans, in the 435-member House. Much of the bill deals with illegalimmigration and border security issues but it also includes "killer" provisions on H1-B and L-1 visas. It is important to note that for the many complaints the US Congress has articulated against India lately, India has raised one real concern this year: against the visa provisions in the immigration reform bill. The bill, introduced on October 2, is essentially a replica of the equally harsh Senate bill, passed this summer. It does nothing to lessen the pain for Indian companies despite many representations and briefings to the US Congress and administration. The likelihood of the House bill being passed is slim because the Democrats are in minority. But be that as it may, the language reflects the current sentiment on the Hill. And that is worrisome. Like the Senate version, the House bill takes specific aim at H1-B and L-1 visas, the two categories used most frequently by Indian IT majors. Bothbills prohibit a company from having more than 50% of its workforce on H1-B or L-1, they drastically raise visa fees, require companies to pay much higher wages and they ask that mandatory ads be published to recruit US workers before hiring an H1-B visa holder. The only relief: the bills raise the cap on H1-B visas from 65,000 a year to between 1,15,000 and 1,80,000, depending on the demand. Visa fees for a company using H1-B workers could rise to $5,000 per application if 30-50% of its employees are on H1-B. If its workforce is 50-75% on H-1B, it will have to shell out $10,000 for each visa application. If this were not enough, thebills want companies to reduce dependence on H1-B visas by 2016 down to 50% of the workforce. Then there are several reporting requirements to the department of homeland security. India's software industry association Nasscom says the provisions amount to a non-tariff barrier. The push for penalising H1-B workers has come both from a few US tech giants and from the rank and file of American tech workers — both really don't like competition when it comes down to it. They are apparently concerned about the plight of H1-B workers who slave away in sweatshops on low wages. Yet, a study by the Brookings Institution found that H1-B workers make 26% higher wages than their American counterparts. Even if you accept that H1-B workers displace some American workers, it is equally true that other Indian companies have invested billions in the US and created thousands of jobs. To cite just one example: Essar is building a steel plant in Minnesota at the cost $1.7 billion, said to be the largest private sector project in North America. Back to the India Caucus and its role as guide and mentor on bilateral issues of concern. It might be time for the Indian community to ask some real questions: what does its money really buy besides photo-ops? Indian diplomats were equally ineffective in creating a balanced debate. They were unable to energise the Indian community to use its clout to calm down Congressional tempers raised by a US business community gone wild. When an SOS went out to Indian community leaders, a majority reportedly didn't respond. The USIndia Business Council has made an attempt to counter the anti-India atmosphere but with minor success. What's missing is an overall strategy that links Indian diplomats, consuls general in various cities, the Indian-American community, India's lobbyists and policymakers in New Delhi into an intelligent design.  The writer is a geopolitical analyst Seema Sirohi