Approvals for L-1 visas, on which Indian software companies rely to send their most skilled professionals on assignments to the United States, were 28% lower at 25,898 in 2011, data from an independent public policy think tank based in the US show. On the other hand, such visa approvals rose by 15% for applicants from the rest of the world, leading to concerns that India is singled out for attention.
"This shows an enormous gap in visas issued as well as approval/denial rates between posts in India and the rest of the world, raising policy questions as to whether this great disparity is the result of a conscious policy at US posts in India," the National Foundation for American Policy wrote in its report.
Most people in the software industry believe there is a deliberate policy of discrimination against Indians but they are wary of voicing their opinion publicly for fear of antagonising the American government.
About 25,000-35,000 Indians travel to the US every year to work on assignments for software companies. Up to 40% of work permits are usually under the L1 category meant for professionals with specialised skills such as project management.
India's $70-billion IT services sector is facing increased scrutiny from US immigration officials and other federal authorities, especially after an American employee of Infosys accused the company of abusing short-term work permits issued under B1 visa category to do software code writing.
The US has also doubled visa fees under the H1 and L1 categories that most Indian companies use. The Indian government has been urging the US, which accounts for more than half of Indian IT exports, to ease up on visa rejections but it does not appear to be making much headway.
Already facing an uncertain economic environment, companies such as TCS, Infosys and Wipro are now being forced to adopt technologies such as telepresence to compensate for the presence of an expert at the customer's site.
For Indian technology companies competing for contracts in the US, every visa denial counts, and can mean loss of business. An executive at a mid-sized company cited the example of a million-dollar short-term project which it lost to a local competitor because it was not able to get its employee an L-1 visa. The rival got the job done through an Indian expert based in the UK.
