India has expressed concern over Washington’s decision to sharply increase H-1B visa fees, cautioning that the measure could carry “humanitarian consequences” and disrupt families.
The United States has raised the application fee for the employment visa to an unprecedented USD 100,000 per applicant, a move that officials in New Delhi believe will have far-reaching repercussions for both Indian professionals and technology companies.
“This measure is likely to have humanitarian consequences by way of the disruption caused for families,” External Affairs Ministry spokesperson Randhir Jaiswal said on Saturday. “The government hopes that these disruptions can be addressed suitably by the US authorities.”
US President Donald Trump signed the proclamation approving the steep hike, describing the overhaul as part of a broader crackdown on immigration. Commerce Secretary Howard Lutnick later clarified that for a three-year visa term, the cost would amount to USD 300,000.
Indians have been the biggest beneficiaries of the H-1B programme, accounting for nearly 71 per cent of approved applications in recent years, according to US Citizenship and Immigration Services (USCIS). At present, companies pay between USD 2,000 and USD 5,000 to sponsor an applicant, depending on employer size and associated costs.
In its first formal response, the External Affairs Ministry said 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 programme.”
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Jaiswal highlighted the significance of skilled labour mobility for both nations, observing, “Skilled talent mobility and exchanges have contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the US and India. Policy makers will therefore assess recent steps taking into account mutual benefits, which include strong people-to-people ties between the two countries.”
The American administration, however, has defended its decision, arguing that the H-1B system was being manipulated. “The H-1B visa programme was created to bring temporary workers into the US to perform additive, high-skilled functions, but it has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour,” Trump said in the proclamation.
He maintained that “the large-scale replacement of American workers through systemic abuse of the programme has undermined both our economic and national security.” The President accused certain employers of using the visa as a tool to suppress wages and distort the labour market to the detriment of American citizens.
The sharply higher fee, unprecedented in the history of the programme, is expected to generate turbulence across sectors dependent on Indian IT talent. Industry leaders in both countries are expected to engage in consultations in the days to come.
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