Tensions between India and the United States are rising over trade and technology. Both countries have introduced new tariffs, and US concerns about market restrictions continue. A potential flashpoint has emerged over H-1B visas, which allow skilled foreign workers to work in the US. Reports suggest the US may consider limiting these visas for countries, like India, that enforce local data storage requirements.
However, the US State Department denied any plans to cap the visas based on such policies. Meanwhile, Indian officials stated they have not received any official communication regarding visa limits.
India relies heavily on H-1B visas; in 2017, it accounted for 75% of approved applications. The program is crucial for India’s $177 billion tech industry, supporting companies like Infosys and TCS in doing business with US firms such as Microsoft and GE. American tech companies like Apple and Google also benefit significantly from the program.
The Trump administration has criticized misuse of H-1B visas for replacing American workers and implemented changes under its “Buy American, Hire American” policy. Indian officials argue that Indian professionals contribute meaningfully to the US economy.
US diplomatic visits, including an upcoming one by Secretary of State Mike Pompeo, aim to address ongoing trade issues. The visit follows India’s reciprocal tariffs on US goods after the US removed India from a key trade preference program.
Disputes over data localization are also adding to the strain. India wants companies to store data domestically for security and accessibility, while the US argues such rules may deter investment and innovation.
