BANGALORE: The US Immigration Reform Bill that passed a key test vote in the Senate on Monday could take away 0.3% to 0.4% of India's GDP in the 2014-15 financial year, says a just released report by brokerage firm JP Morgan.
This, it says, is due to the outplacement clause that would restrict the placement of H1-B workers at client sites. The outplacement clause imposes significant higher filing fees on H1-B dependent employers based on the percentage of non-immigrants employed in the company. These companies currently pay $2,500 for H1-B visa processing and an additional $1,225 for premium processing.
Indian IT exports estimated at $87 billion in 2013-14 is expected to contribute about 4% to the country's GDP and about 7-8% on an incremental basis. The immigration bill, if passed into law, could have a multiplier effect that could impact the country's economy via consumption and growth of ancillary sectors like real estate, travel and hospitality, the JP Morgan report says.
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