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The H-1B visa programme allows numerous country's biggest tech firms and other multinationals to bring foreign workers to the United States, but federal bodies will now be instructed to crack down on abuse of the programme.

At Snap-on, President Trump said reforming the H-1B program will send "a powerful signal to the world: We're going to defend our workers, protect our jobs and finally put America first". US government data shows that almost 127,000 were granted to Indian applicants previous year.

"For too long, rather than operating as designed and allowing only the best and brightest to come in and fill key positions, the H-1B nonimmigrant visa program has been administered in a way that harms American workers", a White House official said.

Mr Trump will direct the departments of State, Justice, Homeland Security and Labour to propose reforms to the scheme, which allows American employers to bring foreign workers to fill U.S. jobs. "They voted to bring back their jobs, and to bring back their dreams into our country", Trump said. So, they are eventually biggest-losers of new executive policy, to be passed by President of United States- Donald Trump, who's likely to sign on Wednesday.

"If it turns out America is a net loser because of those free-trade agreement waivers, which apply to nearly 60 countries, these waivers may be promptly renegotiated or revoked", a second official said.

The President said H1B visas should be given to the most-skilled and highest-paid applicants, and they should never be used to replace Americans.

They included a promise to pursue more investigations of fraud and abuses and a warning to employers applying for the visas not to discriminate against USA workers.

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The United States grants 85,000 H-1B temporary visas to high-skilled foreigners every year - 65,000 hired from overseas and 20,000 from those enrolled in USA colleges.

Terming the proposed changes as forward-looking and non-specific, Nasscom said any move to replace the existing lottery system to select the H-1B applicants based on most skilled or highest paid would have intended consequences.

As for the H-1B visa program, Trump said visas are awarded in a random lottery. Currently, 20,000 of the 85,000 total visas are earmarked for holders of graduate degrees from American colleges.

Earlier, on Tuesday, Australian Prime Minister Malcolm Turnbull also announced a tighter visa policy for the businesses to bring workers in the country. So if enforced improperly, it could cause supply problems in a US market in which up to 25 percent of steel was imported in the first quarter of this year.

U.S. authorities will also conduct site visits to check on employers who hire H-1B visa holders over Americans.

The administration announced that it will suspend "premium processing", a process where USA employers will be expected to wait several months before the H-1B foreign workers can enter the country.

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