Reacting negatively to US President-elect Donald Trump's comments on US visas, India's IT stocks fell sharply in early morning trade on Monday.
Reacting negatively to US President-elect Donald Trump’s comments on US visas, India’s IT stocks fell sharply in early morning trade on Monday. The Nifty IT index fell as much as 1.51 pct, while Infosys Ltd – top loser on the benchmark NSE index – dropped as much as 2.44 pct. Tata Consultancy Services Ltd also slipped as much as 1.47 pct. As of Friday’s close, the Nifty IT index has lost 10.84 pct this year, compared with a 3.97 pct rise in the benchmark index. Donald Trump had recently pledged to stop companies from abusing the visa process for foreign workers. He had said that one of his first executive orders after assuming office would be to order investigation into all visas abuses, indicating that foreigner workers, including Indians, may face tough scrutiny under his administration.
While Trump did not identify or name any particular visa abuse, he was apparently referring to cases like that of Disney World and other American companies wherein people hired on H-1B visas, including Indians, displaced US workers. Disney World and two outsourcing companies have already been slapped with a federal lawsuit by two of its former technology staff, alleging that they conspired to displace American workers with cheaper foreign labour brought to the US on H-1B visas, mostly from India.
Trump also vowed to end illegal immigration. “To protect our country from terrorism and extremism, I will suspend immigration and refugee admissions from regions where they cannot be safely processed or vetted,” he said.
“On immigration, we will build a great wall and we will put an end to illegal immigration and stop the drugs from pouring into our country and poisoning our youth and many
other people. Got to stop the drugs,” he said, adding that “and we’re going to have people come into our country, hundreds of thousands of people. We want them to come in
because we’re going to have big, beautiful doors in that wall, but they’re going to come in legally through a process legally.”
During his presidential campaign also, Trump had emphasised tightening immigration and criticised companies that ship jobs overseas to countries like India and China.
Lawmakers for the past few years have also expressed concern over abuse of H-1B visas by companies.