Press Information Bureau

Government of India

Ministry of Commerce & Industry

09-May-2012 17:17 IST

Discrimination against Indian Software Companies by US

The Emergency Border Security Supplemental Appropriations Act, 2010 of the US, substantially increases the fees for H1B and L1 categories of visas for applicants that employ more than 50 employees in the United States or have more than 50 per cent of their employees admitted on non-immigrant visas (the “50/50 rule”) which is prima facie discriminatory for Indian companies. Department of Commerce proposes to seek consultations with the USA under the Dispute Settlement Understanding (DSU) of WTO.

The Indian firms including TCS, Infosys, Wipro and Mahindra Satyam who fall in the ‘50/50’ rule appear liable to pay higher visa fees. No comments can be made on the exact impact on the US firms of the above US law at this stage.

This information was given by Shri Jyotiraditya M. Scindia , Minister of State for Commerce & Industry in written reply to a question in Rajya Sabha today.

DS/GK

Discriminatory visa fee policy targets Indian software firms, prompting India to seek WTO dispute consultations. The Emergency Border Security Supplemental Appropriations Act, 2010 raises fees for H1B and L1 visas by applying a higher charge to employers with over fifty US employees or with more than fifty percent of staff on non immigrant visas (the 50/50 rule), a measure described as prima facie discriminatory against Indian IT service firms; the Government of India proposes consultations under the WTO Dispute Settlement Understanding to pursue the trade related complaint.