IT sector in India shaken as shares of Infosys, Cognizant, and Wipro drop in response to Trump's proposal for a $100,000 fee on H-1B visas
In a significant move, US President Donald Trump signed an executive order imposing a $100,000 fee for H-1B visa applications, making headlines as breaking news across news outlets like the nytimes and google news. This decision, part of the Trump administration's wider effort to tighten immigration rules, particularly those related to employment-based visas, has sent ripples across the technology sector. The new fee is aimed at addressing concerns about the misuse of the H-1B visa program. Infosys and Cognizant, two major IT service providers that heavily rely on foreign workers, have experienced significant drops in their stock prices following the announcement, with Infosys ADRs falling by 4% and Wipro ADRs declining 2%. Cognizant Technology also saw a 4.3% decline, and Accenture experienced a 1.3% drop. On social media, users are sharing screenshots of these companies' stock graphs, with one user commenting on the drops as a direct result of the new fee. Another user accused these companies of flooding the US with cheap foreign labor by abusing work visa programs. The H-1B visa program, which allows US companies to temporarily employ foreign workers in specialty occupations, is now subject to this substantial fee per application. Under the new rules, H-1B visa petitions for new applications must be accompanied by a payment of $100,000. The US government believes the H-1B program has been misused, leading to American workers being replaced by foreign employees. Previous measures have targeted skilled worker programs with the goal of protecting US jobs over foreign hiring. The new rules signal a tougher stance on companies that rely on foreign workers for US projects. The technology sector is closely monitoring developments around H-1B policy, as major changes could force companies to rethink their strategies. Companies like Microsoft, Amazon, Google, and Apple, which have been among the companies that most frequently file H-1B visa applications in recent years, alongside Infosys, may be directly affected by this new fee. The new fee would directly threaten the cost-saving model of Indian IT service providers, who typically staff their US projects with skilled workers from India. The proposed fee of $100,000 for H-1B visas is a huge increase from the current costs, and its impact on these companies remains to be seen. However, it is clear that the landscape of foreign worker hiring in the US is changing, and companies will need to adapt to these new rules. The US State Department may reject any application that does not include this payment, further emphasizing the importance of this new fee for companies seeking to hire foreign workers under the H-1B program. The executive order limiting the entry of certain H-1B visa holders into the country was aimed at addressing these concerns, and the impact of these changes on the technology sector is unfolding.
Read also:
- MRI Scans in Epilepsy Diagnosis: Function and Revealed Findings
- Hematology specialist and anemia treatment: The role of a hematologist in managing anemia conditions
- Enhancing the framework or setup for efficient operation and growth
- Hydroelectric Power Generation Industry Forecasted to Expand to USD 413.3 Billion by 2034, Projected Growth Rate of 5.8% Compound Annual Growth Rate (CAGR)
