0307 GMT - A stricter visa scheme that serves as a key route for Indians to work in U.S. tech will have implications for the economy, Capital Economics says. Over 70% of H-1B visa holders are from India and tighter immigration rules could slow the drain of workers to the U.S., increasing India's pool of high-skilled workers, economist Jason Tuvey says. Boosting labor supply could aid productive capacity and, at the same time, push down wage growth. But if emigration does slow, that could weigh on remittance flows, an important source of foreign-currency receipts for India equal to 3.4% of GDP, he says. With the U.S. by far the biggest single source of these flows, a fall relative to GDP would cause the current-account deficit to widen and pressure the rupee, he adds. (fabiana.negrinochoa@wsj.com)

(END) Dow Jones Newswires

January 21, 2025 22:07 ET (03:07 GMT)

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