Is recession heading towards depression?
Import tariffs, as a measure of protectionism for domestic industries, haven’t begun rising yet. But if current trends are an indication of things to come, then world trade has started looking inwards and protectionism is surely coming back. India’s service export prospects are turning bleak as a result. The US Congress has recently passed the American Recovery and Reinvestment Act, which beyond providing $787 billion to a beleaguered economy makes life difficult for Indian IT and finance professionals. For the next couple of years, bailed out banks and firms cannot hire workers holding H1-B visas by displacing American workers. The annual intake of H1-B visas is around 65,000, of which 40,000-45,000 are Indian workers. The bulk of Indian H1-B applicants are IT professionals. Further, the Obama administration has decided to discontinue tax incentives for outsourcing companies. The tendency to protect the domestic labour market is not confined to the US alone. In UK and Europe as well,
