Washington: In a move that has sent ripples through India’s technology and professional workforce, the United States under President Donald Trump has sharply increased the H-1B visa application fee from ₹6 lakh to a staggering ₹88 lakh (approximately $100,000).
The new fee structure, effective from Sunday, is expected to have a profound impact on Indian professionals and the companies that employ them.
The H-1B visa, a lifeline for thousands of Indian engineers, scientists, and IT professionals, allows American companies to hire skilled foreign workers for specialised roles. Notably, nearly 70% of H-1B visa recipients are Indian nationals, making this policy shift particularly significant for India’s tech-driven economy.
Who Will Bear The Brunt?
According to the White House, the revised fee applies only to new H-1B visa applicants. Existing visa holders are exempt from the hike. Furthermore, companies or workers involved in US national security, economic interests, or public welfare may be granted exemptions at the discretion of the Secretary of Homeland Security.
However, the burden of the increased fee falls squarely on companies seeking to hire talent from abroad. This means that firms looking to recruit Indian professionals will now face a much steeper cost, potentially discouraging them from hiring internationally and instead prioritising American workers. Experts warn that this could lead to a slowdown in Indian placements in the US and may even contribute to rising unemployment rates among skilled professionals in India.
Rationale Behind The Move
President Trump has long championed the “America First” policy, arguing that the H-1B visa programme has been misused by companies to replace American workers with cheaper foreign labour. The administration claims that the fee hike will ensure only highly skilled professionals are brought into the US, thereby protecting local jobs and curbing alleged misuse of the system.
Industry Reactions And Concerns
The announcement has sparked confusion and concern among Indian professionals and IT companies. Many fear that the increased costs will make it less attractive for US firms to hire from India, potentially impacting the country’s booming IT export sector. Industry leaders are calling for clarity and urging the Indian government to engage in dialogue with US authorities to safeguard the interests of Indian talent.
Looking Ahead
As the new rules come into force, Indian professionals aspiring to work in the US face an uncertain future. The move is likely to reshape hiring patterns, with companies re-evaluating their global talent strategies.
The message from Washington is clear: the bar for entry has been raised, and only the most skilled — and most valuable — will make the cut.