Credit Suisse: US visa curbs may widen India’s current account deficit by 0.4% of GDP, hit remittances

Credit Suisse: US visa curbs may widen India’s current account deficit by 0.4% of GDP, hit remittances

India News

The potential immigration curbs by the United States may widen India’s current account deficit by 0.4% of GDP as it may hit remittances from the US, BTVi said citing research and brokerage firm Credit Suisse. Credit Suisse further said that if all the remittances from the US were to stop, then India’s current account deficit would rise to $34 billion.
India’s current account deficit for the full fiscal year 2015-16 was at $22.1 billion, or 1.1% of GDP, falling from $26.8 billion, or 1.3% of GDP, in the previous year 2014-15, on the back of contraction in the trade deficit. Earlier last week, President Donald Trump-led US administration said it would temporarily suspend expedited applications for H1-B visas, which are widely used by the Indian information technology companies to send their workers to the US to work alongside the clients. The US Citizenship and Immigration Services (USCIS) said on Friday that it would suspend “premium processing” of the visas for up to six months. Nasscom President R Chandrasekhar on Monday said that he met representatives from Congress and different government officials with respect to H-1B Visa programme. In a conversation with CNBC TV18, he said that suspension of fast-tracking H-1B Visas will have business implications. “We will pursue with US government and embassy to ensure that there is no hindrance in the business. 2016 H-1B Visa hike is still not applicable to all IT companies,” he added.