US immigration Bill is a mixed bag for India
India Inc has responded with trepidation to America's immigration reform legislation. While its concerns should be addressed, those concerns need not overshadow the fact that the new law will pave the way to a better life for almost three lakh Indians living illegally in the US today. The Border Security, Economic Opportunity and Immigration Modernization Bill that was passed by the US Senate this past Thursday envisages a pathway to American citizenship for undocumented immigrants who have been residing there before December 2011, while simultaneously propping up border security measures. America is a country built on the back of immigrant workers; yet, an estimated 11 million of them live in the shadows on the edge of society. Even though they contribute in no small measure to the US economy and are an integral part of the American social fabric, these undocumented immigrants are consigned to a life of economic hardship and uncertainty.
The proposed law promises be an important step towards integrating them into the American mainstream so that they may have access to better jobs or at the least get fair wage in their present jobs. Such a step to revamp American immigration rules has been long overdue, and indeed repeatedly taken into consideration — but due to its contentious nature, also quickly discarded. In 2007, a similar legislation to overhaul US immigration did not even get a Senate approval. But this time around, observers believe, the situation is different as there seems to be a stronger bipartisan consensus — the Bill passed by the Democrat-dominated Senate was drafted by four Democrat and four Republican leader. This, however, does not mean that there is whole-hearted agreement on the nature of the reforms.
In fact, the immigration Bill is sure to face stiff opposition when it comes up for approval in the US House of Representatives where the Republicans (who are in majority) are preparing their own version. This is not necessarily a bad thing — especially from the perspective of Indian businesses who are hoping that in the House, the Bill, currently perceived to be discriminating against them, will be softened and smoothened. The Senate Bill makes it significantly more difficult and costlier for large Indian firms operating in the US to temporarily bring in Indian employees, even as it raises the yearly cap on H1-B visas issued to guest workers. Indian IT giants worry that such a provision, coupled with another that prohibits any company with more than half of its staff on H1-B visas from applying for more such permits after 2016, will hit them the hardest.
The new Bill also stipulates higher fees and salaries for H1-B workers which many fear will rob Indian workers of their cost competitive edge. But while these are legitimate concerns, there is no reason yet to rise up in arms. New Delhi has already expressed its displeasure over the issue, while groups such the US-India Business Council and the National Association of Software and Services Companies, popularly known as Nasscom, are working with law makers in the House to ensure a balanced legislation. India and the US have strong economic ties, especially in the IT sector, and laws that hurt Indian businesses will also have an adverse effect on American businesses.