In one ruthless hour, shares of Indian IT organizations smashed today, wiping out over Rs 50,000 crore in the market estimation of top organizations, after a bill was presented in the US House of Representatives calling for dramatically increasing the base pay of H-1B visa holders to $130,000, from the current $60,000. A sharp ascent in least compensation will make it troublesome for Indian IT organizations to contract representatives on H-1B visas to chip away at ventures in the US, which contributes around 60 for every penny of the fare incomes of the Indian IT part.
(Additionally Read: H1B Visas: 10-Point Guide To What Trump Wants To Change – And How)
The BSE IT list, which is a benchmark of IT stocks, fell more than 4 for each penny. Shares of outsourcing mammoth TCS fell 5.6 for every penny, Tech Mahindra 9.7 for each penny, HCL Tech 6.3 for each penny, Infosys 4.6 for every penny and Wipro 4.23 for each penny.
Indian organizations have been enlisting more US natives in expectation of H-1B visa checks. Be that as it may, utilizing more US nationals will altogether raise the cost for Indian outsourcers, in this manner affecting their edges and general benefit.
The Indian IT industry is as of now fighting abating development in the midst of huge changes in the mechanical scene (like computerization and counterfeit consciousness) and worldwide headwinds like Brexit.
AK Prabhakar, head of research at IDBI Capital Markets and Securities, said if pay levels for H-1B visas are climbed as proposed, Indian IT organizations will altogether eliminate sending representatives on these work visas to the US. Just the senior-a great many people would be sent. Be that as it may, Mr Prabhakar stated, with the greater part of the ventures now on computerized or cloud stages, the need to send representatives on H-1B visas will likewise go down.
US President Donald Trump is set to sign another official request went for updating programs like the H-1B and L1 that will make it harder for remote specialists to get work visas.
The High-Skilled Integrity and Fairness Act of 2017 presented by California Congressman Zoe Lofgren in the US Congress proposes to evacuate the ‘per nation’ top for business based outsider visas so that all specialists are dealt with all the more decently and to move to a framework where bosses contract the most gifted laborers without respect to national starting point. The enactment puts aside 20 for each penny of the yearly allotted H-1B visas for little and start-up bosses (50 or less managers) to guarantee independent ventures have a chance to go after high-talented laborers, while as yet securing against outsourcing