The hike in visa fees by the US will not have any major impact on the Indian IT industry since the quantum of hike is not significant, say analysts.
On Friday, the US Congress doubled visa fees to $ 4,500 on the H-1B and L-1 visas citing that it will be used to fund a 9/11 healthcare act and biometric tracking system, even as President Barrack Obama’s term is coming to an end. The US House of Representative is slated to vote on the $1.1 trillion spending bill deal on Thursday.
“The IT firms will pass the extra money they have to incur on visa fees to their clients,” said Sanchit Gogia, Chief Analyst & CEO of Greyhound Research, an independent IT and Telecom Research and Advisory firm. Gogia points out that IT firms have adequate income flows and margins that can absorb this fee hike.
It would be unfair to say that Indian IT industries presence in the US does not benefit America. There are ancillary industries such as tours and travels, housing, hospitality and others that thrive because of the large presence of non-US IT firms in the US. “If the non-US IT companies presence will be pruned, the existence of these ancillary industries too will be threatened,” said Gogia of Greyhound Research.