Nirmala Sitharaman

Irked by the US government’s move to reauthorize James Zadroga 9/11 Health and Compensation Act, which proposes to levy an increased H-1B and L-1 visa fees, IT industry body Nasscom said the act is biased, highly discriminatory, illogical, irrational, shortsighted and would have an adverse business impact.

The James Zadroga 9/11 Health and Compensation Act of 2010 that was passed by the US aims to provide for health and related claims of 9/11 victims.

The amount of over $4 billion required for the purpose is to be paid for by extending the duration of the earlier increase in H-1B and L-1 visa fees from four years to five years as well as by imposing a two per cent tax on US Government procurement from foreign companies. The bill instigated disappointment in the IT body which said that it is disappointing that the US is levying fees only on overseas companies to meet many of its internal funding needs.

Calling the move showing “double standards” of the US, the statement from Nasscom said, “We are increasingly seeing a growing protectionist trend from developed countries like US who have been strongly advocating India to have a more liberalised trade and business environment.” “Such moves can introduce a paradigm of protectionism on the Indian side and derail this partnership,” it added.

Notably, PM Narendra Modi raised the issue with the US President Barack Obama when the latter telephoned him to thank for his leadership role on achieving the agreement on climate change in Paris on December 12. “The PM shared his concerns of the Indian IT industry and professionals on the proposed legislation relating to H-1B and L-1 visas,” according to the Prime Minister’s Office.