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US Visa Denial Rates For Indian Companies Remain High

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US Visa

US Visa denial rates of H-1B non-immigrant visas for Indian companies continued to remain high in the third quarter of fiscal 2020. According to an investigation of US Citizenship and Immigration (USCIS) information by the National Foundation for American Policy (NFAP). Denial rates for new visas for services companies were higher than the average refusal rate of 21%. For the first three-quarters of the fiscal, except for Tata Consultancy Services (15%).

Organizations like Tech Mahindra, L&T, and Infosys reported denial rates of 30%, 26%, and 58% respectively. Along with organizations like Cognizant (48%) that follow a comparable business model. Conversely, US tech organizations like Amazon, Google, Microsoft, and Facebook reported a lot of lower visa refusals at 7%, 1%, 3%, and 1% respectively.

USCIS follows the October to September financial year.

This is in line with what has been going on in the last few years of the Donald Trump government. Where the visa system has become stricter for organizations placing employees in third-party locations.

US visa Denial Rates for Indian Companies

The refusal rate for new H-1B petitions for initial employment rose from 6% in FY 2015 to 21%. Through the third quarter of FY 2020, said Stuart Anderson of the NFAP. “This is in with with the 21% denial rate for H-1B petitions for initial employment in FY 2019 and the 24% refusal rate in FY 2018.

In June, the USCIS pulled out two earlier memos on the agreement and itinerary requirements and employer-employee relationship. Which were utilized to deny an enormous number of visa applications by services organizations. Anderson said information for the subsequent quarters will show whether the rescission of the notices has an impact on H-1B denials. The interest for H-1B visas remains very high. With the agency receiving around 275,000 applications for the 85,000 new visas that are given every year.

[New H1B Visa Rules: What it means for Indian professionals after US court scraps Trump’s hiring law]

The denial rate for H-1B petitions for ‘proceeding’ employment or applications for existing visa holders was 10%. In the first quarter of FY 2020, contrasted with 3% of H-1B petitions for continuing employment in FY 2015 and 5% in FY2017. The organization didn’t give this information for the second and third quarters of FY2020.

Similar to cases for initial employment. Among the most recent top 25 employers with the most approved H-1B petitions for continuing employment in FY2019. 10 organizations that provide information technology or different services to businesses had refusal rates of 11% or higher for H-1B petitions. For continuing employment in the first quarter of FY 2020,” said Anderson. Product organizations, which mainly employ H-1B visa holders in a single location. Demonstrated much smaller increases in their denial rates between FY 2015 and the first quarter of FY 2020.

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