Shares in India's major IT companies fell on Tuesday after local media reported on a US bill that would make it more expensive for firms to replace American employees with workers from foreign countries.
The Highly-Skilled Integrity and Fairness Act of 2017, introduced to the US House of Representatives on January 24, calls for more than doubling the minimum salary of H-1B visa holders to $130,000 from $60,000.
A sharp rise in salaries discourage IT firms from hiring employees on H-1B visas to work on projects in the US.
IT projects and endeavours in the US contribute to around 60% of the export revenues of the Indian IT sector.
Shares of India's top IT companies, like Tata Consultancy Services, Infosys, HCL Technologies and Tech Mahindra fell between 2 and 4.5% on the Bombay Stock Exchange's Sensex.
"India's interests and concerns had been conveyed to the US administration and the US Congress at senior levels," Foreign Ministry spokesman Vikas Swarup said.
US lawmakers have been considering revising guidelines for visas used to bring foreign workers to fill high skilled jobs.
"My legislation refocuses the H-1B program to its original intent - to seek out and find the best and brightest from around the world, and to supplement the US workforce with talented, highly paid, and highly skilled workers who help create jobs here in America, not
replace them," US Representative Zoe Lofgren, the bill's author, said on her website.
The Indian IT industry has been battling a slowdown in global markets as protectionist and anti-globalisation sentiments have gained traction in the US and across Europe.
According to the Indian Brand Equity Foundation, India is the world's largest source of IT services, accounting for approximately 67% of the market worth approximately $130bn.
The IT sector is also one of the driver of India's economy, contributing approximately 9.5% to its GDP.
A sharp rise in salaries discourage IT firms from hiring employees on H-1B visas.
