india

Updated: Apr 23, 2020 20:41 IST

The Indian government is studying the executive order signed by US President Donald Trump to temporarily stop immigration for 60 days though it believes such programmes have benefited the economies of both countries, people familiar with developments said on Thursday.

Trump told reporters on Wednesday he had signed the “very powerful order” aimed at protecting the jobs of Americans laid off because of the Covid-19 crisis. The order said the suspension of immigration will affect those legally seeking to enter the US for employment but not people who are already in the country.

“We have taken note of the order which was signed yesterday and are studying it. It doesn’t cover non-immigrant visas and these programmes have benefited the economies of both countries,” said one of the people cited above on condition of anonymity.

People-to-people contacts are the bedrock of relations between India and the US and New Delhi’s expectation is that visa programmes which have benefited both sides will continue, the people said.

Indian officials have said in the past that Indian immigrants in the US have played a key role in the development of the American economy, especially in the IT and services sectors.

The Indian side recently asked the US to extend the validity of visas, including H-1B and other types of visas, held by Indian nationals who have been hit by the economic downturn caused by the pandemic.

Foreign secretary Harsh Shringla had taken up the matter during his telephone conversation with US deputy secretary of state Stephen Biegun on April 8, when the two sides also discussed ways to enhance cooperation to counter the pandemic and ensure the availability of essential medicines and equipment.

Following the sharp economic downturn and suspension of business operations triggered by the pandemic, a lot of US firms employing H-1B visa holders had laid off numerous employees.

If an employer terminates the contract of H-1B visa holders, the employees need to find new employment within 60 days to retain their status or face the prospect of being deported to their home countries. This existing rule has exacerbated the problems of H-1B visa holders who were laid off.

Explaining the reasons behind the executive order, Trump told reporters on Wednesday: “By pausing immigration, we’ll help put unemployed Americans first in line for jobs as America reopens. It would be wrong and unjust for Americans laid off by the virus to be replaced with new immigrant labour flown in from abroad.”

Trump said without the order, the US would face a protracted economic recovery with persistently high unemployment, if labour supply outpaced demand.

The White House also said in a statement the administration would monitor the labour market and decide whether the order should be extended after 60 days.