Is President Trump acting on his recent ultimatum for India's Modi?
Trump's Afghanistan strategy includes a new ultimatum for India
Matthew Pennington, Associated Press
Aug. 22, 2017
"We appreciate India's important contributions to stability in Afghanistan, but India makes billions of dollars in trade with the United States, and we want them to help us more with Afghanistan, especially in the area of economic assistance and development," Trump said.
He didn't elaborate, but the threat was clear, especially given Trump's regular chafing over countries enjoying significant trade surpluses with the United States. Either India must pony up more money for what the Trump administration is calling its "regional approach" to Afghanistan, or it could face commercial repercussions.
The U.S. deficit in goods and services with India last year was about $30 billion. Trump also is reviewing a work visa program heavily used by Indians.
Interpreting Trump’s not-so-subtle threat to India to do more in Afghanistan
One, this is a clear and overt threat: cooperate or else. President Trump has been waving the trade flag in all his perorations concerning India. He has been unequivocal about seeking enhanced market access for US goods and services. The joint press statement issued during prime minister Narendra Modi’s Washington DC visit has him saying: “It is important that barriers be removed to the export of US goods into your markets, and that we reduce our trade deficit with your country.” Indo-US trade touched $114.8 billion during 2016, with India enjoying a $30.8-billion trade surplus. It would seem Trump has made India’s trade with the US contingent upon cooperation in Afghanistan.
US committee passes bill increasing minimum pay of H1B visa holders to $90,000
If made into law, this bill could prove a deterrent to organisations hiring Indian techies.
TNM Staff
- Friday, November 17, 2017
In what could prove to be a hurdle for Indian IT companies, a key US Congressional Committee has voted in favour of passing a legislation that proposes to increase the minimum salaries of H1B visa holders from $60,000 to $90,000, reported PTI.
The Protect and Grow American Jobs Act (HR 170), which also proposes several other restrictions on H1B visa holders, a majority of whom are Indian, was passed by the House Judiciary Committee on Thursday.
According to the PTI report, the bill will next head to the full House. A similar version of the bill will also have to be passed by the Senate after which US President Donald Trump can sign it into law.
Following Trump's election on a protectionist platform, the US has announced stricter norms for issuing the H1B and L1 visas.
H1B visas are one of the most opted visas in the US that provide skilled workers from foreign countries work in a wide range of specialty occupations, including information technology, academic research, and accounting. It is used mostly by Indian IT professionals.
In April, the US administration began enforcing stricter bureaucratic norms for the issuance of H1B visas in order to prevent "fraud and abuse" in the programme.