Published 13:14 IST, November 6th 2019

Big spike in US H-1B visa denial for Indian IT companies under Trump

Trump admin's restrictive immigration policies led to an increase in rejection of petitions for H-1B visas with the highest denial rate in Indian IT companies.

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Trump ministration's restrictive immigration policies have led to a massive increase in rejection of petitions for H-1B visas with highest denial rate among major Indian IT companies, according to a study carried out by an American think-tank. study by National Foundation for American Policy, based on data received from US Citizenship and Immigration Services (USCIS) showed that denial rates for H-1B petitions, popular among Indian IT professionals, have increased significantly from just six per cent in 2015 to 24 per cent in third quarter of current fiscal.

About H1B visa

H1B visa is a n-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require oretical or technical expertise. techlogy companies depend on it to hire tens of thousands of employees each year from countries like India and China. study reflects that denial rate for H-1B visas is highest among major Indian IT companies, thus giving credence to charges that Indian companies are being unduly targeted by current ministration.

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For instance, denial rate of H-1B petitions for initial employment for Amazon, Microsoft, Intel and Google in 2015 was just one per cent. In 2019, same increased respectively to six, eight, seven and three per cent. denial rate for Apple remained same at two per cent. During same period, denial rate jumped from four per cent to 41 per cent for Tech Mahindra, from six per cent to 34 per cent for Tata Consultancy Services, from seven per cent to 53 per cent for Wipro and from just two per cent to 45 per cent for Infosys, study showed. At least 12 companies that provide professional or IT services to or US companies, including Accenture, Capgemini and ors, h denial rates of over 30 per cent through first three quarters of fiscal 2019. Most of se companies h denial rates between two per cent and seven per cent as recently as in 2015, it said.

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Denial rate high for Indian IT companies

denial rate for H-1B petitions for continuing employment was also high for Indian IT companies. For Tech Mahindra, it increased from two per cent to 16 per cent during same period, while that of Wipro increased from four per cent to 19 per cent, and Infosys from one per cent to 29 per cent, study showed. On or hand, denial rates for H-1B petitions for continuing employment among major American companies were low - Amazon (from one per cent to three per cent), Microsoft (remained at two per cent), Intel (from one per cent to three per cent), Apple (remained at one per cent) and for Google, it increased from 0.4 per cent in 2015 to one per cent in 2019.

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Denial rate shoots up from 6% to 24 %

ting that between 2015 and 2019, denial rate for new H-1B petitions for initial employment qurupled from six to 24 per cent, National Foundation for American Policy said to put this in perspective, between 2010 and 2015, denial rate for "initial" H-1B petitions never exceeded eight per cent, while today rate is three times higher. "A key goal of Trump ministration - achieved through memos and policy changes - has been to make it more difficult for well-educated foreign nationals to work in America in science and engineering fields," foundation said.

In first three quarters of fiscal 2019, US Citizenship and Immigration Services judicators denied 24 per cent of H-1B petitions for "initial" employment and 12 per cent of H-1B petitions for "continuing" employment, it said. 12 per cent denial rate for continuing employment is also historically high. It was only three per cent in 2015, think-tank said.

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Lynden Melmed's comment

"Based on how ncy processes cases, this data suggests environment has t improved for employers," Lynden Melmed, a partner at Berry Appleman & Leiden and former chief counsel for USCIS, said. "'Cream of crop' cases would have been approved during that time period, but cases, where government issued a Request for Evidence, would likely t show up in that data set because y would t be decided until much later," he said.

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Impact on US market

Research by Britta Glenn, assistant professor at Wharton School of Business at University of Pennsylvania, found that "restrictive H-1B policies could t only be exporting more jobs and businesses to countries like Cana, but y also could be making US' invative capacity fall behind". In response to being unable to hire high-skilled foreign nationals, US companies increase ir hiring overseas, which causes more invation by foreign nationals to take place in or countries, benefiting those nations, think-tank said.

H-1B visa restrictions, such as those w being implemented by ministration, push jobs outside United States and le to less invation in America, it said.  In 2017, Trump issued Buy American and Hire American executive order, which he promised would reform high-skilled immigration programme to create higher ws and employment rates for workers in US. Since n USCIS has been denying and delaying record numbers of H-1B visa petitions.

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12:37 IST, November 6th 2019