The Hindu Business Line : Closing visa windows

THE RECENT DECISION of the Bureau of Consular Affairs in the US that makes six categories of visa holders go back to their home country to renew their permits has taken the Indian software community by surprise. It is evident that this notification will affect large numbers in the H1B (for professionals) and L1 (intra-company transfers) category. On the face of it, the industry and trade policy analysts may well be justified in thinking that this is yet another attempt by the US to raise a non-tariff barrier against software and other service exports from India considering that several legislative measures have been proposed at the Federal and State level in that country.

But these fears appear misplaced at this juncture. Washington's explanation that these moves spring from concerns of homeland security cannot be dismissed outright. After all, the country is yet to fully recover from the trauma of 9/11. Also the biometric identifier (or fingerprinting) on all visas is a Congressional mandate, predating the controversy over outsourcing. Taken together with the assurance that its embassies/consulates have been advised to put on fast track the visa renewal applications under this category, the explanation should allay any apprehensions among India's software companies that this is being done to hinder the growth prospects of their businesses. In any case, the latest proposal involves the visa renewals of about only 15,000 Indian IT professionals in the immediate quarter, as estimated by the National Association of Software Companies (Nasscom); the impact on the IT industry, such as it is, can only be marginal. Having said that, it may also be the opportune time for Nasscom (in consultation with the Centre) to begin parleys with the US government to work around serious concerns that can emerge on the visa front. The primary concern obviously relates to the L1 (intra-company transfer) visa. There is a Bill subsisting in the US Senate seeking to impose a ceiling on the L1 visa and restrict its use for specific purposes.

There is a compelling need to sensitise the US Congress against legislative reforms on the L1 and retain the flexibility offered by this visa on all counts. The Information Technology Association of America has come out with a paper which spells out with examples what does or does not qualify as `specialised knowledge' in the IT industry for L1 visa purposes. As long as this is adhered to, the possibility of L1 misuse can be effectively ruled out. Second, if the restrictions on the L1 visa window are imposed in any form, there may be a need for the US authorities to scale up the H1B visas from the existing ceiling of 65,000 to a considerably higher level. As outsourcing gathers greater impetus, after the Presidential elections in the US, this requirement may become even more imperative. The best time to act is now.

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