US President Donald Trump has suspended visas for highly-skilled workers until the end of this year.
The H-1B visa is a non-immigrant visa that allows firms to employ foreigners for up to six years in positions for which they have been unable to find American employees.
The White House claims the move would help jobs for Americans suffering financially. But critics believe White House is exploiting the coronavirus pandemic to tighten up immigration laws.
The suspension of H-1B visa is expected to particularly hurt Indian technology companies and workers. It also allows holders to apply for permanent residency in the US and buy property in the country.
Reports say that Indians take up nearly 70% of the 85,000 H-1B visas issued every year.
Indian tech giants like Wipro, Infosys and Tata Consultancy Services (TCS)send workers from India to manage important projects. It also helps US tech giants like Google, Facebook and Twitter hire talent from India.
The ban announced by Mr Trump will only affect individuals who are planning to apply for the visa. This means those who have already got it and are working in the US will not be affected.
However, H-1B visa holders who travelled to their home countries due to the pandemic will not be allowed to re-enter the US until the end of the year.
The Indian government is yet to react to the decision. It is likely to wait and watch at the moment. The authorities are struggling with a worsening pandemic as well as border tensions with China.
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