The point was highlighted by visiting Commerce and Industry Minister Anand Sharma at the CEOs Forum here.
He said, "Uptake of H1B visas this year has been less than half of annual prescribed limit and the rejection rates have gone up."
Underscoring the importance of free movement of professionals, he also asked for early signing of the India-US Totalisation Agreement.
Under the pact, an expatriate in either country need not contribute to social security schemes of the host country.
The forum comprises top CEOs from both sides and is co-chaired by Tata Group Chairman Ratan Tata on the Indian side and Honeywell Corporation CEO David M Cote from the US.
Referring to simplification of procedures for investing in India, Sharma said all the policy norms have been consolidated into a single document.
He assured the CEOs that India is committed to continuous improvement of its business and investment environment.
The minister also invited US investors to establish National Investment and Manufacturing Zones and urged the CEO forum to suggest global best practices for the proposed townships.
Meanwhile, in a meeting with US Trade Representative Ron Kirk, Sharma discussed ways to strengthen the growing bilateral trade and investment relationship, including through more active engagement under the US-India Trade Policy Forum (TPF).
The TPF is the primary bilateral mechanism for addressing trade and investment issues.
On bilateral investment treaties, Kirk and Sharma expressed support for holding an additional round of discussions before the next TPF meeting and working constructively to move those discussions forward in a timely manner.
During January-November, 2010, the bilateral trade between India and the US stood at USD 45 billion.