India desires to resolve visa row ahead of Obama visit

Software companies of Indian origin account for 12 per cent of visas issued by US

PTI | September 7, 2010



Expressing the desire to resolve the visa fee row with the US before November, India today said it would not like the contentious issue to "stick out like a sloth arm" ahead of President Barack Obama's visit here.

"Everybody is looking for a reasonable way to have this matter resolved amicably...Nobody wishes to have this festering as a wound especially because....there is President Barack Obama's visit," Commerce Secretary Rahul Khullar said.

He said the issue also needs to be resolved because in two weeks from now the joint trade policy forum (TPF) meeting is scheduled.

Underscoring the importance of the Obama visit due in November, Khullar said: "...surely you do not want to go into a visit with something like that sticking out like a sloth arm".

He said that last week several Americans, including Deputy US Trade Representative Michael Punke and Florida Senator George Lemieux, met him and discussed the matter.

Under its border security bill, the US had hiked the fee for certain categories of H-1B and L1 visas by at least USD 2,000 for the next five years.

As per Nasscom's estimates, Indian companies, mostly IT firms, apply for 50,000 visas every year, including H-1B and L1 visas, besides renewal of old visas.

The US says the hike will help it foot nearly USD 550 million, out of the proposed expenditure of USD 600 million, on increasing security along the US-Mexico border.

Khullar said Lemieux would speak for India as "he has a better understanding of why we are distressed by the move. He will get that message conveyed to his colleagues in the Senate as well as the other policy makers in Washington."

The domestic software industry has raised concerns that the increase in fees will adversely impact companies of Indian origin, which account for about 12 per cent of the total number of visas issued by the US.

Khullar also said he discussed the ongoing WTO negotiations with the visiting Americans. He said Indian senior officials would be visiting WTO headquarter in Geneva in October.

Chief agriculture negotiator of the US Isi Siddiqui also meet Khullar recently.

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