April 20, 2016 6:49 pm | Updated 5 years ago.
The US elections are using outsourcing as a pillory and it would thus be politically convenient to push India into paying the bill by augmenting the cost of H1-B and L-1 visa. The Indian government finds this arbitrary and will negatively affect Indian IT professionals. This hike will have an adverse effect on the profit margin of big companies like TCS, Infosys and Wipro as these companies send IT professionals to the United States to work in their respective customer locations.
According to NASSCOM, Indian firms will have to pay an extra $400 million annually this, in turn, will bounce back as a rise in customer fees. Companies will also have to cut down on the number of workers being sent to foreign locations.
India plans to enter into an alliance with the US on ‘Totalization Agreement’. This agreement is entered to ward off double taxation of income regarding social security taxes. The two countries also envisage on entering into Bilateral Investment Treaty to safeguard investments. The Indian finance minister, Mr. Arun Jaitley, also reiterated that India wants to enter into long-term trade relation with the US.
Date of Publication: April 14, 2016