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"Likely To Have Humanitarian Consequences": India On Trump Hiking H-1B Visa Fee

In his latest move to crack down on immigration, US President Donald Trump signed a proclamation imposing a $100,000 (over Rs 88 lakh) fee on H-1B visa applicants.

The Ministry of External Affairs said that the H-1B visa fee hike could have humanitarian consequences

  • The US has imposed a $100,000 annual fee on H-1B visa applicants
  • India accounts for 71% of H-1B visa holders, mostly in tech sectors
  • Indian IT firms like TCS, Infosys, and Wipro rely heavily on these visas
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The Ministry of External Affairs on Saturday said that the H-1B visa fee hike could have humanitarian consequences by way of disruption caused for families. It also said that the government is studying the implications of the hike and hopes that the US authorities will address the matter.

In his latest move to crack down on immigration, US President Donald Trump on Friday, signed a proclamation imposing a $100,000 (over Rs 88 lakh) fee annually on H-1B visa applicants. The visa fee ranges from $2,000 to $5,000, depending on employer size and other costs.

According to Trump the fee hike ensures that the people being brought into the country are "actually very highly skilled" and do not replace American workers. "We need workers. We need great workers, and this pretty much ensures that that's what's going to happen," he said.

In a statement, the Foreign Ministry wrote, "The government has seen reports related to the proposed restrictions on the US H1B visa program. The full implications of the measure are being studied by all concerned, including by Indian industry, which has already put out an initial analysis clarifying some perceptions related to the H1B program."

The ministry highlighted that both India and the US have a stake in "innovation and creativity" and two sides can be expected to "consult on the best path forward".

Will Scharf, the White House staff secretary had said that the H-1B non-immigrant visa program is one of the "most abused visa" systems currently in the US.

"What this proclamation will do is raise the fee that companies pay to sponsor H-1B applicants to $100,000. This will ensure that the people they're bringing in are actually very highly skilled and that they're not replaceable by American workers," he said.

Underlining how talent mobility and exchanges have benefitted both the countries in terms of technology development, innovation, economic growth and wealth creation, the Foreign Ministry said, "Policy makers will therefore assess recent steps taking into account mutual benefits, which include strong people-to-people ties between the two countries."

Impact On Indians

India currently accounts for the majority of H-1B visa holders -- 71 per cent. Around 3,00,000 high-skilled workers in the tech industry are on H-1B visas. Many Indian tech workers and students depend on these visas for career progress, overseas assignments, and jobs at US firms.

Nasscom on Saturday said the US' move to raise H-1B visa application fee to USD 100,000 will impact India's technology services companies as business continuity will be disrupted for onshore projects which may require "adjustments".

Indian IT giants such as TCS, Infosys and Wipro rely heavily on H-1B visas and the new fee could cost the companies billions. A direct outcome would be reduced hiring or shifting jobs back to India.

What Is The H-1B Visa

H-1B visas allow companies to sponsor foreign workers with specialised skills, such as scientists, engineers, and computer programmers to work in the US, for three years but which can later be extended to six.

The US awards 85,000 H-1B visas per year on a lottery system, of which India accounts for around three-quarters of the recipients.

H-1B visa applications had rised sharply in recent years and saw most approvals during former US President Joe Biden, whereas, peak rejections were noted in 2018, during Trump's first term.

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