The United States has told India that it is considering caps on H-1B work visas for nations that force foreign companies to store data locally, three sources with knowledge of the matter told Reuters. This could only widen the row that the two countries’ have over tariffs and trade.
The plan to restrict the popular H-1B visa programme, under which skilled foreign workers are brought to the United States each year, comes days ahead of U.S. Secretary of State Mike Pompeo’s visit to New Delhi.
India, is the largest recipient of these temporary visas, with most of these visas going to workers at big technology firms.
The warning comes at a time when trade tensions are already escalating between the two countries. From Sunday, India has imposed higher tariffs on some U.S. goods, which comes days after Washington withdrew a key trade privilege for New Delhi.
According to sources, U.S. plans to cap H-1B visas between 10% and 15% of the annual quota. There is no current country-specific limit on the 85,000 H-1B work visas granted each year, and an approximate 70% go to Indians.