India asks US for more work visas

[dhilipkumar]

NEW DELHI: The Indian government has asked the US to increase the number of work visas (H1-B and L1) and ensure that there be no legislation to prevent companies from applying for such visas. India has also asked the US government to expedite action on a totalisation agreement to avoid double taxation on Indian workers in the US.

These issues were raised by the Indian representatives during a recent meeting of the US-India Information and Communication Technology Working Group.

Politicians in the US have raised the issue of H-1B visa abuse by foreign firms, including Indian firms. US senator Chuck Grassley introduced an H-1B visa reform bill last year to give priority to American workers and crack down on visa frauds.

He, along with senator Dick Durbin, had also written to nine Indian IT firms, seeking information about their wages and layoffs in the US. However, companies such as Microsoft want the cap on H1-B visas be raised to allow entry of more skilled workers into the US.

Earlier this year, Microsoft chairman Bill Gates asked the US Congress to increase visas, citing his own company's inability to hire as many foreign workers as it wanted to. Over 1.3 lakh H1-B visa applications were received for fiscal 2008-09, far in excess of the limit.

The government has pointed out that Indian workers in the US contribute about $2 billion to its social security system every year without getting any benefits. As there is no totalisation agreement between the two countries, Indian firms that send their employees to the US have to pay social security taxes in both countries. Talks for such an agreement to avoid double taxation have been on for some time. India has asked that action on this front be expedited.