Obama snubs, then praises India-14/08/2010

14/08/2010

Obama snubs, then praises India

Washington: First came the snub. On India’s Independence day eve, US President Barack Obama, unmindful of India and corporate America's concerns, signed into law a legislation to secure the US-Mexico border with $600 million raised by hiking work visa fees.



Then came the wish. Wishing India a happy and safe Independence Day, Obama has said he was looking forward to his India visit aimed at making their relations "one of the defining partnerships of the 21st century".

On the one hand the US wants India to foot the bill for its security across the borders with Mexico and, on the other, do business with India through strategic partnership (read defence deals).

The Indian IT industry is one wronged lot now and will soon take up with the US Administration and the Congress the impact of the imminent hike in visa fee on its on-site engineers deployed in American firms.

Expressing frustration over the profound lack of understanding in the US Congress of the contribution by the Indian IT firms to the American economy through innovation and job creation, Nasscom president Som Mittal said the revised fee may discourage some firms from hiring talent needed to expand and create more jobs. "The US government has a legitimate right to protect its borders, but foreign firms should not be asked to bear the cost of this," Mittal asserted.

A summary of the bill named Indian firms Wipro, Tata, Infosys and Satyam, which send thousands of employees each year to the United States to work at their clients' locations as technicians and engineers.



The measure's $ 600 million tag would be paid for mostly by hiking visa fees on what the measure's backers called a handful of foreign firms that "exploit" US visa programme to improperly import workers to the United States. A summary of the bill named Indian firms Wipro, Tata, Infosys and Satyam, which send thousands of employees each year to the United States to work at their clients' locations as technicians and engineers.

The legislation raises the fees on H-1B visas for companies who have more than 50% of their employees on such visas for highly skilled professionals from $320 to $2,320. Similarly the fee on L visas given to multi-national transferees is hiked from $320 to $2,570. The Senate briefly suspended its six-week summer break to give final approval to the border security bill on Thursday in response to Obama's request for reinforcements on the Southwest border by passing the House version of the bill by "unanimous consent" with just two lawmakers present.

Soon after signing the bill, Obama said in his greetings: "The strategic partnership between our countries will continue to grow, and I am looking forward to my November visit to India." This was his message on India's August 15 Independence Day.

"Our goal is to make this one of the defining partnerships of the 21st century," Obama said noting "Ties between our two peoples have never been stronger."



"India's non-violent struggle for freedom, its rejection of terrorism and extremism, and its belief in democracy, tolerance, and the rule of law," he said "has had a profound effect on many countries."

The US civil rights movement leaders, including Dr. Martin Luther King, Jr., had spoken "about the debt they owed to Mahatma Gandhi."

Describing over two million members of the Indian American community as "living examples of the bonds that bind our nations together", he said "their accomplishments have become well-known and admired in both countries."

In his message Obama said: "On behalf of my administration and the American people, I wish to congratulate all who will celebrate the 63rd anniversary of India's independence. Indians around the world can not only look back on their history with pride, but can also look ahead to a future filled with hope and further progress.

"Ever since August 15, 1947, India's non-violent struggle for freedom, its rejection of terrorism and extremism, and its belief in democracy, tolerance, and the rule of law have been an inspiration and beacon of hope for people around the world.

"India's example has had a profound effect on many countries, including the United States. Leaders of our civil rights movement, including Dr. Martin Luther King, Jr., spoke about the debt they owed to Mahatma Gandhi.



Meanwhile, the US hopes that a new law to secure US-Mexico border by raising $600 million through steep work visa fee hikes would not affect its "close, robust and vital relationship" with India.

"I think this administration has a very close relationship with India and we hope to sustain it as such," US Homeland Security Secretary Janet Napolitano told reporters on Friday when asked about fears the law, which largely affects India's IT and outsourcing industries, would hurt their relationship.

"I don't think it will," she said when asked to comment on the warning of US-India Business Council representing top 300 US companies doing business with India that the "discriminatory" law would impact burgeoning India-US economic ties.

"I think the United States and India have a robust and vital relationship, and nothing in this bill should interfere with that," said Napolitano at a White House briefing shortly after President Barack Obama Friday signed the controversial bill into law ignoring Indian and American corporate concerns.

Defending the visa fee hike Napolitano said: "I think the method of payment, which is an increased visa charge for certain business-related visas makes a lot of sense" because it pays for immigration out of the visa system.



"And that way it doesn't come out of the general fund, which is necessary for so many other things," she said commending the Senate for finding a way to "fund this bill that doesn't add to the deficit and allows us to get the enforcement monies we need on a permanent basis."

Asked to comment on reports that the US could be taken to the World Trade Organisation (WTO) for violating the WTO rules with this provision, Napolitano said: "On that I can't comment. That has not been raised to me at all."

The visa fee increases pay for 1,000 new US Border Patrol agents to form a "strike force" for quick deployment, 250 new Immigration and Customs Enforcement agents as well as 250 new Customs and Border Protection officers at ports of entry.

"Ties between our two peoples have never been stronger. The over two million members of the Indian American community are living examples of the bonds that bind our nations together and their accomplishments have become well-known and admired in both countries.

"The strategic partnership between our countries will continue to grow, and I am looking forward to my November visit to India.

"Our goal is to make this one of the defining partnerships of the 21st century. Once again, congratulations and best wishes for a happy and safe Independence Day."

Source: IANS