The move by the United States of America to cap the H-1B visas and raise the minimum investment which is required for availing the EB-5 visas is likely to affect Indians’ movement to the US in the future.
According to an EB-5 expert in investment and immigration, Vivek Rao, the EB-5 policy change which will be effected from October 2019 will adversely affect the Indians. Applicants from India may likely reduce from 80% to 90% if the minimum investment is increased from $500,000 to $1.35million by the US Government.
According to three knowledgeable sources, India has been informed of the United States’ decision to cap H-1B work visas for countries that enforce local storage of data by foreign companies. However, a source from an industry based in Washington, who was aware of the negotiations made by India and US reported that capping the H-1B visas by the US government was made deliberately in response to the storage of data rules globally. Indians were not the sole target.
EB-5 is an investment program set aside for Indian immigrants who are wealthy so that they can live their dreams in America.
It is a government-sponsored program that allows immigrants to come to the US, invest and obtain a green card.
According to the program, the investments are in construction, real estates, and other job-creating sectors. After a certain period, investors may collect their invested money. Investors who get a green card have the liberty to work in the US. However, each country can get 700 allocations out of the 10,000 issued yearly.
The present limit is considered low by Trump administration compared to other countries. For the similar program, the cap is $4 million in Australia, $2 million in the UK and $1 million in Canada. Indians may complain about making such huge investments abroad, as such RBI may bring regulating issues.
The director and Head of Maryland Centre for Foreign Investments LLC, Rao said a lot of business professionals in India were willing to open new businesses in the US and eventually stay there. He claimed that there were Indian students in US higher institutions and as such, they may be affected by this change.
EB-5 has become very popular in India after Trump administration tightened the H-1B visa norms. This temporary visa is received largely by Indians to enable them to work at big IT Firms.
EB-5 became the top priority after the H-1B visa fell. But this potential increase may dim such opportunity.
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