Taking up the cause of the Indian IT industry, the Centre has asked the UK not to implement proposals, being considered by it, of increasing visa fees for skilled workers and raising minimum salary threshold for intra-company transfers, as it would raise the “financial burden’’ of such companies.
The Commerce Ministry has sent a letter to the UK’s Home Office — a government department in charge of immigration issues — stating that the report of the Migration Advisory Committee (MAC) on professional visas be ignored as it would have repercussions on Indian IT firms as well as UK companies using their services.
“A letter has been sent from the Commerce Secretary’s office to the UK’s Home Office. A communication will soon be sent from the Commerce Minister as well. This is an issue that we will pursue with full vigour as our industry will find it difficult to cope if the MAC’s recommendations are implemented,” an official said.
The MAC, which was asked to suggest ways to meet the UK government's target of slashing migration, proposed a £1,000 skills levy on companies for every worker hired from abroad. It also recommended increasing the minimum salary threshold for a tier 2 visa (issued for intra-company transfer) from £20,800 to £30,000 and £41,500 for third party contractors.
This will substantially limit intra-company transfers to UK as only the top level officials are given such pay packets in India. A number of top Indian IT companies such as Infosys and Wipro operate in the US.
Targeting IT professionals The MAC’s recommendations, which specifically target Indian IT professionals and are being studied by the Home Office, are to be implemented on April 6. New Delhi is trying to make it change its mind before that, the official said.
Industry body Nasscom is lobbying with various interest groups in the UK to build popular opinion against the move. “Nasscom has already submitted data to the MAC showing that Indian IT companies contribute very little to net migration. The Commerce Ministry, too, has argued that placing curbs on Indian IT professionals will not serve to bring down migration as many are short-term workers staying in the UK for 12 months or less,” the official said.
Several sections of the British industry have also criticised the move with some, such as the Federation of Small Businesses, stating that it would prove to be “an unfair and unnecessary barrier to growth for small employers’ desperately seeking to fill skilled vacancies”.
According to the MAC report, Indian professionals accounted for the largest number of visas under tier-2 in the year ending September 2015, with 90 per cent of such visas being issued to Indian workers. As per estimates made by campaign groups in the UK, in 2014, the number of Indian workers in the UK on tier-2 visas was 36,672 as opposed to a total of 52,478 persons coming into the UK on such visas that year.
Recently, the Indian IT industry was hit by a decision of the US to double a levy imposed on short-term work visas for companies recruiting more than half of their workforce from outside the country.