India Raises Alarm Over Trump’s $100K H-1B Visa Fee Increase

India has expressed significant concerns regarding the United States’ recent decision to impose a steep annual fee of $100,000 on H-1B visas. The Ministry of External Affairs (MEA) stated that this move could lead to “humanitarian consequences” for thousands of Indian professionals and their families. The announcement has prompted India to closely examine the implications of the fee increase, which is expected to disproportionately affect Indian nationals, who represent approximately 71% of H-1B visa holders in the United States.

Currently, around 300,000 skilled Indian workers, primarily in the technology sector, hold H-1B visas. The MEA acknowledged that it is reviewing the ramifications of the new fee structure, which was introduced as part of a broader immigration policy reform by the Trump administration.

According to the MEA, “The government has seen reports related to the proposed restrictions on the US H-1B visa programme. The full implications of the measure are being studied by all concerned, including Indian industry, which has already released an initial analysis clarifying certain perceptions related to the programme.” The ministry’s statement highlights the importance of skilled talent mobility and the mutual benefits it brings to both nations.

Concerns Over Economic and Social Impact

The MEA reiterated the shared interest between India and the United States in promoting innovation and the exchange of talent. The ministry noted that both countries have benefitted from the contributions of skilled professionals in technology development, economic growth, and wealth creation. It stated, “Policy makers will therefore assess recent steps taken into account mutual benefits, which include strong people-to-people ties between the two countries.”

The fee increase follows a proclamation by President Donald Trump on March 15, 2024, which raised the cost of H-1B visas from the current range of $1,000 to $5,000 to the new $100,000 annual requirement. This significant financial burden could effectively dismantle the H-1B programme, as the new fee exceeds the median annual salary of a fresh visa holder and surpasses 80% of the average salary among all H-1B recipients, according to an analysis by the Hindustan Times.

The MEA cautioned that the proposed fee hike could have far-reaching social consequences, stating, “The new requirement is likely to have humanitarian consequences by way of the disruption caused for families.”

As the Indian government engages in consultations with various stakeholders, the focus remains on diplomatic negotiations and industry responses to address potential fallout from this policy change. The government is keen to explore avenues that could alleviate the impact on those affected by the new regulations.

The situation continues to evolve as both governments navigate the complexities of immigration policy and its implications for skilled professionals, particularly in the technology sector.