H-1B, L-1 visas suspension ‘mildly negative’ for Indian IT firms: Icra

The temporary suspension of H1-B and L-1 visas by the US is a “mildly negative” development for the Indian IT companies as their dependence on permits has gone down lately, a domestic rating agency said.

Indian IT companies have reduced their dependence on the visas because of the tightening of visa issuances like allowing only the highly trained and a preference for US-educated individuals while granting H-1Bs.

The Donald Trump administration’s order for temporary suspension was driven by the Covid-19 pandemic impact on the US economy, which has skyrocketed unemployment rates in an election year.