H-1B Visa Fee Hike: A Self-Goal for US? How India Stands to Gain
US President Donald Trump’s decision to impose a $100,000 annual fee on H-1B visas has sparked intense debate worldwide. While the move is being justified as a measure to protect American jobs, experts argue that it may backfire on the US economy and benefit India by accelerating innovation, offshoring, and reverse migration of skilled talent.
What Changed?
- New Rule: Mandatory annual $100,000 fee on H-1B visas (effective immediately).
- Previous Fee: $2,000 to $5,000 (depending on employer size).
- Visa Validity: 3 years, renewable.
- Trump’s Justification: Protecting US jobs, preventing outsourcing, and ensuring national security.
Industry & Expert Reactions
Expert / Leader | Key View |
---|---|
Amitabh Kant (ex-NITI Aayog CEO) | Called it a “choke on US innovation” and a “turbocharge for India.” Predicted growth of startups, labs, and patents in Bengaluru, Hyderabad, Pune, and Gurgaon. |
Mohandas Pai (Infosys veteran) | Said no company will pay $100,000; predicted offshoring will rise sharply over the next 6–12 months. |
Kunal Bahl (Snapdeal co-founder) | Predicted a reverse migration of Indian professionals back home. |
Raja Krishnamoorthi (US Congressman) | Called the move “reckless,” warning that America risks losing its high-skilled workforce. |
Ajay Bhutoria (Community Leader, Silicon Valley) | Warned of damage to US tech ecosystem and deterrence of global talent. |
Impact on India
- Talent Retention: Skilled engineers, doctors, and scientists may choose to stay in India.
- Offshoring Surge: US firms expected to expand operations in India through GCCs (Global Capability Centres).
- Startup Boost: Return of experienced professionals could fuel entrepreneurship.
- Tech Hub Growth: Bengaluru, Hyderabad, Pune, and Gurgaon poised to gain global innovation momentum.
US Companies That Depend on H-1B Talent
According to USCIS FY2025 data, the biggest users of H-1B visas are both Indian IT firms and US tech giants:
Company | No. of H-1B Approvals (FY2025) |
---|---|
Amazon | 10,044 |
TCS | 5,505 |
Microsoft | 5,189 |
Meta | 5,123 |
Apple | 4,202 |
4,181 | |
Cognizant | High approvals |
Infosys | High approvals |
HCL America | Significant approvals |
Deloitte, JP Morgan, Walmart | Major users |
Short-Term vs Long-Term Outlook
Short-Term Effects (US):
- New applicants discouraged.
- Higher operational costs for firms.
- Negative sentiment among immigrant communities.
Long-Term Effects (India):
- Increase in offshoring.
- Surge in innovation and startup ecosystems.
- India emerges as a global hub for tech talent.
FAQs on H-1B Visa Fee Hike
Q1. What is the new H-1B visa fee announced by the US?
A mandatory $100,000 annual fee, effective immediately.
Q2. How much was the H-1B visa fee earlier?
Between $2,000 and $5,000, depending on employer size.
Q3. Who will be most affected by this decision?
Indian IT companies, US tech giants, and skilled Indian professionals planning to work in the US.
Q4. How does this benefit India?
It will lead to reverse migration, more offshoring, and boost India’s innovation ecosystem.
Q5. What do experts say about this move?
Many believe it’s a “self-goal” for the US, as it could weaken its innovation and global competitiveness.
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