India: Although 1% Cap on Foreign Worker Visas Lifted, $25,000 Salary Requirement Remains

Flag of IndiaAs noted by Daily News & Analysis, although the Indian government has removed the 1% cap on foreign worker visas for infrastructure projects, the requirement that employment visa applicants draw a salary in excess of $25,000 USD remains (see Part B of FAQs Relating to Work Related Visas Issued by India (pdf)). However, the salary requirement does not apply to: ethnic cooks; language teachers (other than English language teachers)/translators; or consular staff working in India.

The Indian Consulates in the United States reportedly have not been recognizing the rescission of the 1% cap on foreign worker visas, which is causing challenges for U.S.-based companies.

The employment visa scheme in India been revised multiple times over the past year. In September 2009, the government issued guidelines (pdf) concerning employment and business visas. Because the initial guidelines created confusion, the Ministry of Home Affairs later released an FAQ explaining the differences between employment visas and business visas. Revised guidelines (pdf) were issued in December 2009; under the revisions, the 1% cap on foreign worker visas was to be effective only until June 2010. The 1% cap had an almost immediate negative effect, delaying numerous infrastructure projects. This prompted the government to contemplate whether specific project visas for infrastructure projects should be created; the government continues to debate the issue

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.