The recent decision by US President Donald Trump to raise H-1B visa fees to USD 100,000 per worker may end up hurting America more than India, according to the think tank Global Trade Research Initiative (GTRI).
The organisation noted that Indian IT firms already employ between 50 and 80 per cent local staff in the US, amounting to around 100,000 Americans.
"So the measure won't create many new jobs. Instead, it will make hiring Indians on-site costlier than hiring locals," GTRI said on Sunday.
The think tank highlighted the cost disparity, an IT manager with five years’ experience earns USD 120,000-150,000 in the US, compared with 40 per cent less for an H-1B worker and 80 per cent less in India.
Also read: ‘Disruptions can be addressed’, India tells US on H-1B fee hike
"Faced with this huge fee, firms will accelerate offshoring, doing more work remotely from India. That means fewer H-1B petitions, less local hiring, higher project costs for US clients, and slower innovation," said GTRI Founder Ajay Srivastava.
He added that India could turn the move into an opportunity. "India must plan to benefit from fee hikes by using the returning talent to build domestic capacity in software, cloud, and cybersecurity -- turning a US protectionist step into a long-term boost for India's digital 'Swaraj Mission'."
Trump’s proclamation, issued on September 19, raises the fees for visas used by companies to hire foreign workers, including from India, to live and work in the US. A White House official clarified on Saturday that the USD 100,000 fee would apply only to new applicants.
"President Trump's September 19 decision to raise H-1B visa fees is likely to hurt the US more than India," Srivastava said.
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