US cuts issuance of H-1B visas

US has cut the number of H1 B visas to overseas professional this year. According to the figures available just 45,471 H-1B visas have been issued for initial employment in the first half of fiscal 2003 (till March) as against a prescribed annual cap of 195,000.

The limit of 1,95,000 is expected to be curtailed back to 65,000 during the starting of October 2003. US officials say the drop over the past year is not due to any conscious decision on the administration's part.

They attribute it to two factors: the continuing economic slowdown and the growing preference of American firms to outsource work. Indian tech hands have been the principal beneficiaries of the H-1B visas, which entitle a holder to live and work in the US up to six years.

The three-year phase comes to an end in September. Although the Congress is still to formally review and decide on the provision, the talk on Capitol Hill has been that the cap will revert to the earlier 65,000 visas.