High-tech firms await impact of India ban

High-tech firms await impact of India ban
Tom Foremski US sanctions against India in response to its nuclear weapons testing could hit US high-tech companies hard. There are thousands of Indian engineers working at US high-tech companies, with almost four thousand working in the Silicon Valley area alone. US companies also operate India-based research and development operations that are vital to their US-based businesses. The US-based Indian engineers may be forced to leave, making the skills shortage problem worse at a lot of companies. So far, the Clinton administration has not said if it will cancel Indian work visas. Silicon valley-based companies say that US sanctions against India shouldn’t have a serious impact on their business for now. Motorola last week said that it had invested about $3.5m in a design centre in India but claimed that the investment was made before the imposition of US sanctions. The US has placed restrictions on supercomputer sales to India and it is expected to expand sanctions to include other products and services. It said that such sanctions are necessary as part of its efforts against nuclear weapons proliferation. l UK electronics exporters are holding their breath as they wait to see whether the UK government follows Washington in imposing trade or technology sanctions against India.


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