Commerce and Industry Minister Nirmala Sitharaman could find it difficult to maintain her tough stance on US government’s curbs on H1-B visas, experts said.
On Thursday, the minister said the US government should realise subsidiaries of US companies based in India also send their earnings to the US, which experts said meant that the government might be exploring capping royalty payments by India-based subsidiaries to US companies.
Such a move ran the risk of harming investor confidence in the country, experts said. Royalty is paid to a foreign collaborator for transfer of technology and use of brand names or trademarks.