The spokesperson also said that the government's foreign policy has facilitated expansion of workforce within the country through flagship programmes such as Make in India, Skill India, Digital India, by delivering large technological partnerships and enhanced foreign direct investment.
He added that the Trump administration's H1-B visa policy review will not serve the objective of saving local jobs as the new rules are primarily going to impact only Indian IT companies while not touching other IT players. Indian IT companies get over 60 per cent of their revenues from the North American market, about 20 per cent from Europe and the remaining from the other economies.
He signed the order during a visit to the headquarters of Snap-On Inc, a tool manufacturer in Kenosha, Wisconsin, saying that H-1B visas should "never be used to replace Americans", adding that "we are about to take bold new steps to follow through on my pledge to buy American and hire American". The visas are in high demand and given out using a lottery system.
He said that the government is talking to industry bodies as the matter directly concerns Indian workers in the IT industry.
"Currently, companies routinely abuse the H-1B visa program by replacing American workers with lower paid foreign workers", it further said. "The Indian IT industry brings in skilled people in areas where there are gaps in the U.S. and in spite of the gap if the USA believes that protection is required for qualified American workers, we have no objection provided they go for full protection".
According to a report in the Mint, India has signalled it could respond to the USA move to restrict H-1B visas by capping the royalty payout by American companies in India to their parent firms. Remittances (money from America to India) from the USA would decline hurting the balance of payment.
The US grants H-1B visas to foreign nationals in "speciality" occupations. "It is a question of United States dollars 100 billion software export industry that employs over four million people and reservations for H1B visa for start-ups with less than 50 employees will decrease the number of visa available for Indian firms", added Rawat.
"We see this change as evolutionary and a new policy of the Australian government".